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Unit 7: Foreign Direct Investment

Mauritius is the major investing country in India during 1991–2008. Nearly 40 per cent of FDI notes
inflows came from Mauritius alone. The other major investing countries are USA, Singapore,
UK, Netherlands, Japan, Germany, Cypress, France and Switzerland. An analysis of last eighteen
years of FDI inflows in the country shows that nearly 66per cent of FDI inflows came from only
five countries viz. Mauritius, USA, Singapore, UK, and Netherlands.
Mauritius and United states are the two major countries holding first and the second position in
the investor’s list of FDI in India. While comparing the investment made by both countries, one
interesting fact comes up which shows that there is huge difference in the volume of FDI received
from Mauritius and the US. It is found that FDI inflows from Mauritius are more than double
from that of US.
Top 10 FDI investing countries in India are Mauritius, Singapore, United States, UK, Netherlands,
Japan, Cyprus, Germany, France and UAE.
Table 7.2: Share of Top Investing Countries FDI Equity Inflows

Source: http://www.indiabiznews.com/sites/default/files/fdi3.png
FDI-Sectoral analysis: FDI inflows are welcomed currently in 63 sectors as compared to 16 sectors
in 1991. The sectors receiving the largest share of FDI inflows up to 2010 were the service sector
and computer software and hardware sectors, each accounting for 22.14 per cent and 9.48 per cent
respectively. There were followed by the telecom, real estate, construction and automobile sectors.
The top sectors attracting FDI into India via M&A activity were manufacturing, information; and
professional, scientific and technical services.

1. Infrastructure sector received 28.62% of total FDI inflows from 1991–2008
2. Services sector received 19.34% of total FDI inflows from 1991–2008.
3. Trading sector received 1.67% of total FDI inflows from 1991–2008.

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