According to a report compiled by Economist Intelligence Unit in cooperation with Columbia Programme on International Investment (CPII); India is likely to receive an average foreign direct investment (FDI) of US$20.4 billion every year, during the next five years. India's close competitor, China, would attract average foreign investments of US$86.8 billion a year, till 2011. The report expects the US to retain its top slot in the list of FDI recipients with total inflow of US$250.9 billion per year.

The Union government is currently working on a comprehensive bill to promote FDI and to simplify the calculation of FDI. The bill intends to incorporate specific provisions on indirect shareholdings from Foreign Exchange Management Act (FEMA), the Companies Act and the FDI policy including various press notes and relevant laws in foreign countries.

Notwithstanding the pressures from small shop owners and a few political parties, the Union government is all set to permit FDI into multi-commodity retail. Indicating the government's view, the Union Finance Minister, P Chidambaram, addressing the students of Wharton School of the University of Pennsylvania recently, said that it is only a matter of time before the policy is amended to allow FDI in retail.

In September 2007, the Union Ministry of Finance cleared 17 FDI proposals worth Rs.284.8 crore. Amongst these, the prominent one was the Rs.205.8 crore proposal of Sogeparticipations, France. The French company plans to undertake portfolio management services and investment advisory services.

New Delhi-based JTEKT Sona Automotive India Ltd., also received the clearance to bring in Rs.28.9 crore as FDI for manufacturing and selling Column Type Electric Power Steering (C-EPS) systems.