Foreign Direct Investment is expected to cross the $20 billion mark during the calendar year 2007. In the first 11 months, the country received $17.6 billion . During 2005 and 2006, the country received $4.4 billion and $11.12 billion USD respectively.

In December 2007, the Union government announced a number of relaxations in the FDI limits in sectors like Aviation, Petroleum Refinery, Construction, etc. Now, Telecom Regulatory Authority of India (TRAI) has recommended an increase in the FDI limit for the FM Radio segment. TRAI has suggested an increase in FDI limit from 20 per cent to 26 per cent for those FM Radio ventures, which intend to broadcast news. For non-news FM ventures, it has recommended an increase in FDI limits from 20 per cent to 49 per cent.

FDI Clearance

During February 2008, the Finance Ministry cleared 25 FDI proposals worth Rs.5,584.82 crore, in various sectors. The largest FDI proposal cleared is of Swiss-based telecom company, ByCell Holdings AG. The company proposes to induce Rs.1,950 crore into its Indian JV company ByCell Telecommunications India, to offer GSMbased cellular telephony services on a pan-India basis, over the next five years.

Earlier, the government had deferred its decision on the Swiss company's proposal, on grunds of security. Another major FDI proposal cleared by the Finance Ministry is J.M. Financial Trustee’s Rs.1,460 crore proposal to induce foreign equity by subscribing to private placement of units. Among the other major proposals cleared by the Ministry are: