The cumulative amount of foreign direct investment (FDI) flows into India from April 2000 to September 2010 aggregates up to US$ 178.05 billion, according to the latest data released on November 23, 2010 by the Department of Industrial Policy and Promotion (DIPP).
The non-resident Indians (NRIs) among the overseas Indians accounted for US$ 4.67 billion FDI inflows during this period contributing to almost 3.8 per cent of the total FDI inflows into the country.
| NRI INVESTMENTS IN INDIA: A Close Watch |
 |
| Amount of NRI FDI Inflows |
| |
(in Rs million) |
(In US$ million) |
% age to total FDI Inflows |
| 2009-10 |
16,919.58 |
354.75 |
1.37 |
| 2008-09 |
73,141.81 |
1,603.82 |
5.95 |
| 2007-08 |
67,628.48 |
1,695.49 |
6.86 |
Cumulative Total
(from April 2007 to March 2010) |
1,57,689.87 |
3,654.06 |
|
| Source: SIA Newsletters and OIFC analysis |
|
|
| FDI inflows from NRIs in India in financial year 2009-2010 are US$ 354.75 million (Rs 16,919.58 million) and declined by 78 per cent with respect to FY 2008-09. The FDI inflows in the same period in previous financial year (2008-09) were USD 1,603.82 million (Rs 73,141.81 million). India's FDI from NRIs in FY 2008-09 fell by 5 per cent margin. But in Rupee terms NRI FDI inflows grew at about 8 per cent with respect to previous year in the same period. Thus, when tabulated cumulatively from the Secretariat for Industrial Assistance (SIA), DIPP newsletters, a total sum of US$ 3,654.06 million (Rs 157,689.87 million) represents the country’s NRI FDI inflows from April 2007 to March 2010. |
|
| Unit holding Pattern Of Mutual Funds Industry (as on March 31, 2010) |
| Category |
Number of Investors Accounts |
% to Total Investors Accounts |
Net Assets (Rs Million) |
% to Total Net Assets |
| Individuals |
4,63,27,683 |
97.07 |
24,53,902.80 |
39.77 |
| NRIs |
9,43,482 |
1.98 |
2,74,288.60 |
4.45 |
| FIIs |
216 |
0.00 |
63,350.00 |
1.03 |
| Corporates/ Institutions/ Others |
4,52,330 |
0.95 |
33,78,125.80 |
54.75 |
| TOTAL |
4,77,23,711 |
100 |
61,69,667.20 |
100 |
| Source: Securities and Exchange Board of India (SEBI) |
|
|
| As on March 31, 2010 there are a total number of 47.72 million investor accounts in the Indian mutual funds industry, holding units of Rs 6,169,667.2 million. Out of this total number of investors’ accounts, 0.94 million are NRI investors accounts, accounting for 1.98 per cent of the total number of investors accounts and contribute Rs 274,288.6 million which is 4.45 per cent of the total net assets. |
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In the year 2010, India has so far registered 869 deals including mergers and acquisitions (M&A), private equity (PE) and qualified institutional placement (QIP)) valued at Rs 2,54,700 crore (US$ 54.4 billion), as per a recent report by Grant Thornton India. About 226 PE deals have been struck in 2010 so far valued at Rs 23,715 crore, with 64 deals valued at Rs 14,535 crore finalised in November 2010 alone. 54 QIP deals were finalised between January-November 2010 at Rs 26,100 crore, as against 48 deals amounting to Rs 37,800 crore, being struck in the corresponding period last year.
According to Mr Sanjay Sethi, Executive Director and Head of Infrastructure Group at Kotak Mahindra Capital, the PE investors may invest nearly US$ 1 billion in the Indian power sector in the next six months.
There were 330 domestic deals during the year, for about Rs 79,560 crore. The most prominent of these domestic deals being the Axis-Enam deal, which led to the acquisition of Enam by Axis Bank. A total of 259 cross border deals were struck between January-November 2010, of which 81 were inbound and 178 were outbound.
There were 22 investments worth US$ 2 billion in the power sector so far this 2010 till November 2010 as compared to 21 investments worth US$ 560 million in 2009 according to Chennai-based research company, Venture Intelligence. "With the country aiming at high growth target, power sector has become one of the most stable bets for PE investors," said Arun Natarajan, Chief Executive Officer (CEO), Venture Intelligence.
Interestingly, FDI in renewable energy sector has witnessed an upward trend and investment in 2009-10 has been robust, according to the Government. "The FDI in renewable sector has been growing rapidly. During 2006-07, 2007-08, 2008-09 and 2009-10, the investment to the sector was US$ 2.11 million, US$ 43.15 million, US$ 85.27 million and US$ 497.91 million respectively," according to Mr Farooq Abdullah, Union Minister for New and Renewable Energy (MNRE) stated in a written statement to Rajya Sabha.
At the same time, the overseas investments by individuals may cross the US$ 1 billion mark during the current year as Indians show interest to invest in equities and property, besides remitting more money as gifts and for maintenance of close relatives. During the first six months of 2010-11, overseas remittance by individuals went up by over 18 per cent to around US$ 565 million, compared to US$ 477 million during April-September 2009. The money was remitted under the liberalized remittance scheme (LRS), which permits people to spend up to US$ 200,000 annually without prior permission from the Reserve Bank of India (RBI).
Reinforcing faith in the Indian economy, overseas funds have infused a whopping US$ 4.78 billion in the capital market in November 2010, taking the year-to-date total to US$ 39 billion. With an investment of US$ 4.78 billion in November, the total inflows of foreign institutional investors (FIIs) so far in 2010 have crossed the record US$ 38.76 billion mark.
According to data available with Securities and Exchange Board of India (SEBI), FIIs have made investments worth US$ 4.11 billion in equities and poured US$ 667.71 million into the debt market. According to analysts, FIIs have been pumping funds into emerging markets like India because of growth potential.