According to the latest statistics available, India received a record foreign direct investment worth $24.57 billion in 2007- 08. This was around 56.5 per cent higher than the total FDI the country received during the fiscal 2006-07. Although the total FDI inflows missed the government’s estimate of $25 bln FDI inflows during 2007-08, by small margin, India has emerged as the third largest recipient of FDI in Asia after China and Hongkong. The government has now set FDI target of $35 billion for 2008-09.

On the policy front, continuing its reform process further, the government proposed to allow FDI into the small scale sector through the automatic route. It was also reported that, plans are afoot to remove the 25 per cent upper limit capped on FDI in the small scale sector companies.

The long debated issue of allowing FDI into the Media sector surfaced in April, with communication companies like Bharti Airtel, Ortel Communications and IndusInd Media demanding liberalisation of the upper limit of 49 per cent, which is currently permitted. However, Indian media companies want no change in the upper limit.

In April 2008, the Finance Ministry cleared 33 FDI proposals worth Rs.2,619 crore. Of the proposals cleared, the largest one was by the Walt Disney Company (Southeast Asia) Pte Ltd., a subsidiary of The Walt Disney Company. It proposed to invest around Rs.924 crore in UTV Software Communications Ltd. and UTV Global Broadcasting Ltd. The other major proposals came from GS Strategic Investment Ltd. and GTL Infrastructure Ltd. GS Strategic proposing an investment Rs.300 crore for induction of 20 per cent foreign equity in a commodity broking company. Whereas, GTL Infrastructure Ltd., proposed an investment of Rs.272 crore for foreign equity between 49 per cent to 74 per cent in a company engaged in IP-I category activities way of sponsored GDR/ADR.

During April 2008, FIPB deferred 13 proposals including that of Singapore-based Delight Investments, which proposed to invest in a HindilanguageHindilanguage newspaper group. Aster Infrastructure's proposal to transfer its stake by its existing foreign investor NSR-PE Mauritius to NSR Alpha Mauritius was also deferred. The FIPB declined Al Khaleej's foreign investment proposal to set up a refinery in India, as the Commerce and Food ministries are not in favour of the same.

Meta Telecom Pvt. Ltd.'s proposal to increase foreign equity from 40 per cent to 73.45 per cent in a company engaged in ILD and NLD services, was deferred twice in the month by the FIPB.

FIPB also rejected three proposals; by Kim Eng, Venture India Ltd. and Starlight Real Estate Ltd. Kim Eng, a Singapore based securities broking firm, had applied to conduct stock broking business in India, but faced rejection as it planned for stock broking activities as a 'nonfund based' activity. The proposal from Venture India Ltd. which planned to bring in 49 per cent foreign investment into multi- brand retailing was rejected due to the bar on FDI in multi-brand retailing. Mauritius-based Starlight Real Estate faced a negative response to repatriate investment before the mandatory lock-in period of three years, according to Press Note 2 relating to FDI.

Lastly, two proposals from Essar Power Ltd. and Axis Private Equity Ltd. have been recommended for consideration of CCEA, as each of the two proposals involves an investment over Rs.600 crore.