THE outward Foreign Direct Investment (FDI) comprising equity, loan and
guarantee invoked by Indian parties has increased from US$ 7210.32 million
during 2000-01 to 2004-05 to over US$ 72037.17 million during 2005-06 to
2009-10.
The increased outward FDI by Indian parties has been primarily
driven by resource seeking or market seeking or technology seeking motives. It
is also a part of corporate strategy to promote the brand image and utilization
of raw materials available in the host country.
An Indian party, who
complies with the applicable provisions of Foreign Exchange Management
Regulation is allowed to make FDI abroad under the general permission. The onus
of ensuring/ adhering to the terms and conditions of the ODI regulations rests
with the Indian Party.
This information was given by the Minister of
State for Finance, Mr Namo Narain Meena in written reply to a question in the
Rajya Sabha today.
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