Foreign direct investment (FDI) is an investment made by an organization/entity in one country in an industrial/business activity in another country. FDI can take place in the form of establishing new business operations from scratch or acquiring existing business assets in the other country. FDI includes mergers and acquisitions, building new facilities, expansion of existing production capacity, etc. FDI usually involves control/participation in management, joint-venture, management expertise and technology transfer. It excludes investment through purchase of securities or foreign portfolio investment, a passive investment in the securities of another country e.g. shares and bonds.
India has restrictions or caps on FDI in various sectors like aviation, insurance, banks etc. India is the second most important FDI destination after China. The sectors that have attracted higher FDI inflows in India are services, telecommunication, construction activities and computer software and hardware. Mauritius, Singapore, UK, USA and Japan are the leading sources of FDI for India. In recent years, India has attracted a lot of FDI as a result of liberal FDI policies, strong economic fundamentals, market size etc. One of the important sectors attracting FDI in India is Agriculture sector.
The amount of FDI in Agriculture sector was $ 91.01 million in 2013-14. The amount of FDI in Agriculture sector was $ 59.95 million in 2014-15. It decreased by $ -31.06 million. In percentage term, it was decreased by -34.13%.
The amount of FDI in Agriculture sector was $ 84.65 million in 2015-16. It increased by $ 24.7 million with comparison with 2014-15. In percentage term, it was increased by 41.2%.
The amount of FDI in Agriculture sector was $ 14.86 million in 2016-17 (April- Sept).
Note: Source: RAJYA SABHA SESSION – 241 UNSTARRED QUESTION NO.342; Source: DIPP.
Resource Title: Total FDI inflows in agriculture sector from 2013-14 to 2016-17 (Apr- Sep)(From:Ministry of Agriculture & Farmers Welfare)