1. F.D.I. In India Business Environment Suneel Gupta

2. INDIAN Reforms-The Philosophy Plug into the Global Economy Large scale economic reforms FDI recognised as a Growth Driver

3. India – A Good Place to Put Your Money Second Largest Emerging Market Largest democracy – political stability & consensus on reforms Liberal & transparent investment policies Fourth largest Economy (PPP) - A safe place to do business Largest reservoir of skilled manpower Long-term sustainable Competitive advantage - High growth rate economy

4. FDI Attracting long-term foreign capital to supplement domestic investment efforts, particularly in infrastructure and export competitive sectors Developing attractive Configurations of locational advantages at global level Promoting technology and other linkages to enhance domestic industry competitiveness Creating skilled employment Opportunities and Import of world Class managerial practices

6. The “confidence” called India One of the fastest growing economies, second only after China Fourth-largest economy on purchasing power parity basis 3rd in investor confidence for FDI investments India offers the best return on investment among emerging markets “ The Time is now..to be in India. This is perhaps the most optimistic I’ve felt about India in the last 10-15 years that I’ ve been coming here.” – Jeffrey Immelt

7. Global Business Leaders on India “ India is a developed country as far as intellectual capital is concerned” “ India has evolved into one of the world’s leading technology centres. ” “ India can be the test bed for developing solutions for the poorest nations. ” “ India is handling the most sophisticated projects in the world. I am impressed with the quality of work” JACK WELCH, GE GERARD KLEISTERLEE , PHILIPS CRAIG BARRET, INTEL BILL GATES, MICROSOFT

10. Sectoral Targets for Achieving 8% GDP Growth ( $7-8 Bn) 8.9 Total 0.5 Dis-investment 0.2 Civil Aviation 0.2 Roads 0.2 Real Estate 0.2 Hotels & Tourism 0.2 Chemicals & Petrochemicals 0.3 Ports 0.3 Textiles 0.4 Transportation 0.4 Food & beverage 1.0 LNG & Oil Exploration 0.8 Financial Services 1.2 Power 2.5 Telecom FDI Target (US$ Bn) Sector

11. Global Leaders from India One of the top IT Services company in the world World’s largest refinery plant Largest producer of motorbikes in the world World’s largest producer of terry-towels World’s 2nd largest forging company with outsourcing to major car manufacturers World leader in viscose staple fibre and 3rd largest producer of insulator Amongst top 3 truck manufacturers in the world World’s largest tube based television manufacturer 3rd largest producer of optical storage media in the world

13. Key Economic Indicators: GDP Growth Rate (1993-94 as base year)

14. Key Economic Indicators: External sector Foreign Exchange Reserves (US$ billion) Exchange Rate (Rs/US$)

19. INVESTMENT REQUIREMENT: US $ 347 Bn INFRASTRUCTURE Source: Rakesh Mohan Committee Report (1996-2006) INVESTMENT OPPORTUNITIES

22. Rationalisation of FDI Policy Allowed selectively up to 40% Up to 51% under Automatic Route for 35 Priority Sectors up to 74/51/50% in 112 sectors under Automatic Route 100% in some sectors Up to 100% Under Automatic Route in all sectors except a small negative list More sectors opened Equity caps raised Procedures simplified Pre 1991 1991 1997 2000 2000-05 Procedural further simplified New sectors opened Equity caps raised 2006

23. Investing in India – Entry Routes Automatic Route Prior Permission (FIPB) Investing in India General Rule No prior permission required Inform Reserve Bank within 30 days of inflow/issue of shares By Exception Prior Government Approval needed. Decision generally within 4-6 weeks

24. FDI Approval Procedure Government Route for few sectors Automatic Route in most Sector RBI FIPB No permission required, only to notify RBI within 30 days of issue of shares to foreign investors Approval is granted generally in 30 days

35. Sectoral Distribution of FDI Inflows (1991-August 2002)

37. THANK YOU