FDI inflows up by 259% in September 2008 – DMIC Project aims to double employment potential

Consequent to the policy changes and procedural simplifications, FDI equity inflows have registered a phenomenal upswing. The FDI equity inflows in the month of September, 2008 were US $ 2.56 billion, representing a growth of 259% over the same month in the previous year (during September, 2007, the FDI equity inflows were US $ 713 million).  FDI equity inflows during April-September 2008 have been US $ 17.21 billion. This represents a growth of 137% over the previous year (FDI equity inflows during April-September 2007 were US $ 7.25 billion).  The sectors attracting the highest FDI equity inflows during April to August, 2008 have been the services sector (US $ 2.34 billion), construction activities including roads and highways (US $ 1.64 billion), housing and real estate (US $ 1.62 billion) and computer hardware and software (US $ 1.36 billion). The top investing countries in terms of FDI equity inflows during April to August, 2008 have been Mauritius (US $ 5.27 billion), Singapore (US $ 1.72 billion), USA (US $ 1.15 billion) and Netherlands (US $ 580 million).

The government has, on a review of the FDI policy, further liberalised the following Sectors:  (1) Petroleum & Natural Gas;  (2) Civil Aviation; (3) Commodity Exchanges; (4) Credit Information Companies; (5) Mining of Titanium bearing minerals and ores and its value addition; and (6) Industrial Parks;

The UNCTAD World Investment Report 2008, in its analysis of the global trends and sustained growth of FDI inflows, has reported a significant increase in FDI inflows in India. The increase is mainly due to an improved investment environment and further opening up of the telecommunications and other industries.  The report also says that the prospects for FDI to the region (South, East and South-East Asia) remain promising despite concerns about the impact of the financial crisis.

DELHI- MUMBAI INDUSTRIAL CORRIDOR (DMIC) PROJECT

With the objective to create strong economic base with globally competitive environment and state-of-the-art infrastructure to activate local commerce, enhance foreign investments and attain sustainable development, the government accorded 'in principle' approval for the DMIC Project.  DMIC Project aims at doubling the employment potential, tripling the industrial output and quadrupling exports from the region in the first five years. 

On requests from the Southern States, DIPP initiated action on the Chennai -Bangalooru - Mumbai Industrial Corridor (CBMIC) Project. The work of preparation of the Concept Paper for the CBMIC Project has been assigned to M/s IDFC Projects Ltd. 

INTELLECTUAL PROPERTY RIGHTS

A plan scheme for Modernisation and Strengthening of Intellectual Property Offices at an outlay of Rs.300 crore has been approved by the Cabinet Committee on Economic Affairs for implementation during the 11th Five Year Plan. As part of implementation of the scheme, 414 new posts have been created in Intellectual Property Office.

The intellectual property office has received record number of applications during the financial year 2007-08 compared to the financial year 2006-07. During the period, the number of patent applications increased from 28,882 to 35,067; the number of trade marks applications increased from 1,03,419 to 1,23,514. Number of applications for registration of designs during 2007-08 was 6402 as against 5521during 2006-07.

The number of Geographical Indications registered so far crossed 100 and stood at 104.

INDUSTRIAL INFRASTRUCTURE UPGRADATION SCHEME (IIUS)

Four projects, 3 in industrially less developed States and one against cancellation of a project have been sanctioned with a total cost of Rs.205 crore including Central grant of Rs.142 crore. These projects are: Handloom Cluster, Chanderi, Readymade Garments Cluster, Jabalpur, Auto Cluster, Adityapur (Jharkhand) and Engineering Cluster, Nashik. The IIUS has been recast based on critical evaluation of the Scheme carried out by an independent agency and EFC has already approved the recast IIUS with an allocation of Rs.450 crore for taking up 10-15 projects in the 11^th Five Year Plan.

NORTH EAST INDUSTRIAL INVESTMENT PROMOTION

Rs.629.06 crore was released during the year under Transport Subsidy Scheme, Capital Investment Subsidy Scheme, Interest Subsidy Scheme and Comprehensive Insurance Scheme.

PROJECT APPROVAL BOARD/ INDUSTRIAL LICENCES

The main function of Project Approval Board/ Industrial Licences is receipt and disposal of applications for grant of Industrial Licences and Foreign Technical Collaborations.  The details of approvals / licences issued during the year 2008 are:  (a) Direct Industrial Licences - 102; (b) Converted Industrial Licences - 12; (c) Foreign Technical Collaboration approvals - 94; and (d) Letter of Intent - 4.