Delhi, Mumbai corner half of FY08 FDI inflow
WHILE FDI inflows into the country increased eight times over the last four years, the major beneficiaries of the accelerated flow have been only two cities — Delhi and Mumbai. In 2007-08, the two cities attracted around 50% of the total FDI booty of $24.5 billion. Other major cities such as Kolkata, Bangalore, Chennai and Ahmedabad together attracted just 17% of the total FDI inflow. Interestingly, between Delhi and Mumbai, the latter has emerged the clear winner in 2007-08 by attracting FDI of $7.6 billion in the first eleven months. Delhi attracted FDI worth $3 billion during the period. Other cities including Bangalore, Chennai, Hyderabad, Ahmedabad and Kolkata recorded small inflows of $1.5 billion, $0.47 billion, $1 billion, $2 billion and $0.38 billion, respectively, during the April-February 2007-08 period. In 2006-07, total FDI inflows were at $15 billion with Mumbai attracting $3.5 billion and Delhi $2.5 billion. Among sectors, the biggest beneficiary in 2007-08 (till February) was services which recorded an FDI inflow of $5.4 billion. This is the first time the sector has topped the chart. In 2006-07 and 2005-06, electrical equipment sector ruled the roost. In 2007-08, electrical equipment slid to the seventh position, attracting just $2 billion of foreign investment. Telecommunication, on the other hand, moved up from the third to the second slot. It received $4.8 billion of FDI in 2007-08. Real estate proved to be one of the most attractive sectors for foreign investors in 2007-08. FDI in real estate witnessed an inflow of $7.1 billion as compared to just $2.2 billion between 2000-2006. In 2007-08, the country received FDI of $24.5 billion as against $15.7 billion in 2006-07, showing a growth of 56%. In 2005-06, the growth was even sharper at 184%, up from $5.5 billion in 2004-05. Mauritius and Singapore are the two biggest investors in the country. The inflows from Singapore have more than doubled to $1.67 billion in 2007-08 as against $ 578 million in the previous year. FDI from Mauritius and Singapore were recorded at $9.4 billion and $6.4 billion respectively in 2007-08. Investments from Japan have grown the fastest — from $55 million in 2006-07 to $761 million in 2007-08. Besides Mauritius and Singapore, the US and UK are the largest source for FDI. In the first 11 months of 07-08, UK invested $1.12 billion and US invested $1.02 billion, respectively.