Foreign Direct Investment (FDI) in India’s power sector declined 67 per cent to $536 million in 2012-13 from $1.6 billion in the previous year.
Some big companies are reconsidering their investment plans, after losses owing to lack of coal and natural gas supply, reports indicate.
FDI across all sectors declined 38 per cent in 2012-13, to $22.4 billion from $35.1 billion in 2011-12. The government aims to attract $36 billion of FDI in 2013-14.
In 2012-13, the major share of FDI came from the services sector (sans telecom), which declined 7.3 per cent to $4.7 billion from $5.2 billion in 2011-12.
Automobiles saw a rise of 67 per cent to $1.5 billion from $923 million. This is the highest in this industry for six years, according to DIPP. According to a recent report, 53 per cent of these inflows come from the passenger vehicle segment.
The major contributions came from Ford, which said it was setting up a second facility, of $40 billion, in Gujarat; Toyota Kirloskar which invested $9.9 billion across its two units in Karnataka, and Hyundai Motor’s $300 million at Chennai.
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