The Union Ministry of Finance on 3 November 2010, on the recommendations of the FIPB, cleared 13 proposals of FDI amounting to Rs. 1,710.63 crore.

GMR Airports Holdings Bangalore's Rs. 960 crore proposal for induction of foreign equity in an investing company was one of the major proposals cleared. Further, Falcon Tyres' Rs. 705.40 crore investment plan for induction of foreign equity by an erstwhile Overseas Corporate Body to carry out the activity of manufacturing, also got a go ahead from the government. Japan based Metal One Corporation's proposal to establish a new JV company for processing and supply of steel products to cater to the captive requirements was the third major proposal that was approved.

Meanwhile, 16 proposals, including those of Jubilant Aeronautics, DLF Limitless Developers, Reliance Broadcast Network etc were deferred while four proposals were rejected.

FDI drops 26 per cent in January - September

The FDI inflows registered 26 per cent fall during January-September 2010 as compared to the same period in 2009, says latest data released on 23 November 2010 by DIPP.

During January-September 2010, India attracted FDI worth just $15.97 billion (approx Rs. 73,408 crore), against $21.44 billion (approx Rs. 1,04,881 crore) of FDI approved during the corresponding period in 2009.

The sectors that attracted large foreign inflows included services (financial and non-financial), computer software and hardware, telecommunications, housing and real estate, power and automobiles. The countries that brought in huge foreign capital into the Indian economy during the ninemonth period included Mauritius, Singapore, USA, and the UK.

Policy Developments:

PIO investments to be treated on par with NRIs, DIPP

The DIPP is likely to put up a proposal for treating people of Indian origin (PIO) on par with nonresident Indians (NRIs) in the investor class. In this regard, the department has sought suggestions from the Union Ministry of Civil Aviation and the Union Ministry of Urban Development.

However, the recommendation is expected to come with certain riders for investing in sectors such as aviation and real estate.

In case, the proposal is cleared, it is likely to see more external investment in the country.