According to the latest figures available from the Union Ministry of Commerce and Industries, India received USD 16 billion during the fiscal 2006-07. This was almost three times higher than the USD 5.5 billion FDI inflows, registered during the preceding fiscal. If the reinvested earnings by MNCs are included, the total FDI inflows adds up to USD 19 billion.

Buoyed by the 2006-07 performance, the ministry expects the current fiscal (2007- 08) to see total FDI inflows of USD 30 billion including USD 4 billion in the form of retained earning of foreign companies. Among the sectors, Services, Telecom Manufacturing, Auto and Auto components are expected to receive the highest FDI inflows.

During April 2007, the Ministry of Finance cleared 36 proposals worth Rs.827 crore. On 9 April 2007, the ministry cleared 13 proposals worth Rs.476 crore and followed it with another set of 23 proposals worth Rs.351 crore, in its second meeting held on 30 April 2007.

On 9 April 2007, the Finance Ministry cleared purchase of 6 per cent equity in National Stock Exchange (NSE), by three Mauritius-based companies - MS Strategic (Mauritius), Actis Investment Holdings and Citigroup Strategic Holdings.

Among the other proposals cleared on that day, was the Rs 225 crore investment proposal in construction sector by Sweden-based Quinn Logistics and the proposal of Exel India, to issue equity without voting or dividend rights to Deutsche Post International BV for 32.6 million Euros (approx. Rs 190 crore)

In the second meeting held on 30 April 2007, the Finance Ministry cleared the proposals of Patil Rail Infrastructure Pvt. Ltd; seeking foreign equity of up to 49 per cent, amounting to Rs 2.41 billion. The ministry also cleared FDI plans of Grotto SPA of Italy and Aldeasa SA of Spain.

Grotto plans to invest Rs 18.5 crore and acquire a stake of up to 50 per cent, in a JV that will manufacture and market its brand of premium casual wear.

Aldeasa has drawn up plans to set up duty-free shops in Indian airports, in a JV with an initial investment of Rs 15.75 crore.

In a significant move, on 28 April 2007, the Foreign Investment Promotion Board (FIPB) requested the Union government to review FDI norms, so as to ensure that direct and indirect shareholdings are clearly defined and sanctity of sectoral caps is not violated through legal loopholes by foreign companies.

The Board feels that there is a need to plug legal loopholes and clearly define direct and indirect shareholdings, so that sectoral caps are not flouted by companies. On 29 April 2007, the department of economic affairs announced that w.e.f 1 May 2007, all foreign investment coming in as non-convertible, optionally convertible or partially convertible, optionally convertible or partially convertible preference shares would be considered debt and will be governed by the external commercial borrowing (ECB) guidelines and caps.