Indo Japan Investment Relations 08012007

Slide1: 

Foreign Direct Investment in India February 7, 2007

Investing in India – Entry Routes: 

Investing in India – Entry Routes Automatic Route Prior Permission (FIPB) Investing in India General rule No prior permission required Only information to the Reserve Bank of India within 30 days of inflow/ Issue of shares By exception Prior Government Approval needed Decision generally Within 4-6 weeks Investing in India – Entry Routes

Slide11: 

FDI Policy …. Prohibited activities FDI Policy …. Prohibited activities Retail except single brand retailing allowed upto 51% with FIPB approval Atomic energy Lottery business Betting and Gambling

Slide12: 

Manufacturing 100% FDI permitted in all activities under automatic route except: Cigar and cigarettes of tobacco - FIPB Products reserved for Small Scale Sector FDI less than 24% under automatic route FDI beyond 24% - FIPB subject to export obligation Defence products FDI upto 26% - FIPB subject to licensing of Arms and Ammunitions FDI Policy for Industry Sector…Fully permitted FDI Policy for Industry Sector…Fully permitted

Slide13: 

FDI Policy for Industry Sector…. Fully permitted FDI Policy for Industry Sector…. Fully permitted Mining Coal – FDI upto 100% as per Coal Mines (Nationalization) Act 1977 Diamond, Gold, Silver , Minerals – upto 100% under automatic route as MMRD Act Atomic minerals – upto 74% in JV with PSUs – FIPB Electricity FDI upto 100% under automatic route in Generation, Transmission, Distribution and Power Trading as per Electricity Act 2003

Slide14: 

FDI Policy for Service Sector…. Largely permitted FDI Policy for Service Sector…. Largely permitted FM Broadcasting (20%) - FIPB Uplinking News and CATV Channel - FIPB Print Media – News Papers & Periodicals - FIPB Insurance - Automatic Upto 26% Upto 49% Broadcasting - Cable Network, DTH, Setting up hardware - FIPB Stock Exchanges - FIPB Air Transport Services - Automatic

Slide15: 

FDI Policy for Service Sector…. Largely permitted FDI Policy for Service Sector…. Largely permitted Telecommunication - FIPB (Beyond 49%) Private sector banks - Automatic Development of existing airports - FIPB (Beyond 74%) Publishing scientific magazines - FIPB Courier services - FIPB Upto 74% Upto 100%

Slide16: 

FDI Policy for Agriculture Sector…. Largely Restricted FDI Policy for Agriculture Sector…. Largely Restricted Floriculture, Horticulture, Development of seeds, Animal husbandry, Pisciculture, Cultivation of vegetables, Mushrooms under controlled condition allowed 100% under automatic route Tea plantation – 100% with FIPB and divestment of 26% in 5 years Other activities not allowed.

Slide17: 

FDI Inflows….Robust Growth FDI Inflows….Robust Growth (Only Equity)

Slide18: 

FDI Inflows- Sector -wise Electrical equipment including software moves to over all 2nd position in Nov 2006. Services sector shows spurt in growth and the top sector attracting FDI – moving up from the third position. Spurt in FDI in Real Estate causes the construction sector to the third position in Nov 2006.

Slide19: 

FDI – Country wise Mauritius continues to lead USA retains its position as 2nd most important source country Spurt in FDI from Singapore 4012

Slide20: 

Investment Promotion and Facilitation Investment Promotion and Facilitation Promotion Holding ‘Destination India’ and ‘Invest India’ events abroad. Events were held at France, Japan, UK, Finland, Taiwan, Italy, USA, and Davos this year. Publications, Chat room and Website Facilitation Country Focus Desks Foreign Investment Implementation Authority Policy review comprising of review of route, Equity caps and procedures.

Slide21: 

India Japan Investment Relations Japan 4th largest investor : US$ 2.18 billion (November2007) US$ 168 million in 2005 US$ 104 million in 2006 (Jan -Sept) Top sectors Transportation (55%), Electrical Equipment (7%), About 350 Japanese companies present in India. Japan Global Investments US$31 billion in 2004 US$46 billion in 2005 Around US$10 billion in East Asia Japan cell set up in to facilitate establishment and operation of Japanese investments. India Japan Investment Relations

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Japanese Companies in India Japanese Companies in India

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Japanese FDI Projects over 2005-2007 Japanese FDI Projects over 2005-2007