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International Business

notes FDI flows at US$ 11.2 billion in the first six months. FDI inflows continued to be preponderantly
of the equity variety, broad-based and spread across a range of economic activities like financial
services, manufacturing, banking services, information technology services and construction.
From April 2000 to November 2007, Mauritius remained the predominant source country for
FDI to India accounting for 44.24 per cent share of the cumulative total, followed by the United
States (9.37 per cent), the United Kingdom (7.98 per cent) and the Netherlands (5.81 per cent).
During April-November 2007, the position of Mauritius remained still prominent (42.77 per
cent). While the shares of the United States (5.45 per cent), the United Kingdom (2.19 per cent)
and the Netherlands (4.51 per cent) were lower, those of Japan (5.72 per cent) and Singapore (8.73
per cent) were higher.

Note The total amount of FDI in India came to around US$ 42.3 billion in 2001, in
2002 this figure stood at US$ 54.1 billion, in 2003 this figure came to US$ 75.4 billion, and
in 2004 this figure increased to US$ 113 billion.

7.6.1 Sectoral Inflows of FDI in India
The major sectors of the Indian economy that have benefited from FDI in India are:

l z Financial sector (banking and non-banking).
l z Insurance
l z Telecommunication
l z Hospitality and tourism
l z Pharmaceuticals
l z Software and Information Technology.
Table 7.5: Sectors Attracting Highest FDI Equity Inflows
(In ` crore)
sector 2005–06 2006–07 2007–08 2008–09 cumulative % of total
(april-July) (apr.2000- inflows*
July 2008)
Services (Financial & non- 2399 21047 26589 6684 62381 20.97%
financial) (543) (4664) (6615) (1602) (14659)
Computer Software & 6172 11786 (1410) 4642 36809 12.37%
Hardware (1375) (2614) (1092) (8370)
Telecommunications 2776 2155 5103 1295 18043 6.065
(624) (478) (1261) (315) (4157)
Construction 667 4424 6989 6224 19606 6.59%
(151) (985) (1743) (1483) (4646)
Automobile 630 1254 2697 1792 11648 3.92%
(143) (276) (675) (441) (2678)
Housing and Real estate 171 2121 8749 5480 16642 5.59%
(38) (467) (2179) (1315) (4026)
Power 386 713 3875 2124 11754 3.95%
(87) (157) (967) (520) (2725)
Metallurgical 6540 7866 4686 3208 10556 3.55%
(147) (173) (1177) (766) (2528)
Chemicals (Other than 1731 930 920 1261 7401 2.49%
fertilizers) (390) (205) (229) (301) (1686)
Petroleum & Natural Gas 64 401 5729 263 8509 2.86%
(14) (89) (1427) (62) (2043)
Figures in bracket are in US$ million
* In terms of `
Source: DIPP, Federal Ministry of Commerce and Industry, Government of India

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