FDI shoots 15 per cent to $4.5 billion
New Delhi: Foreign Direct Investment (FDI) into India has gone up to about $4.5 billion during the year 2000, as against $4 billion in 1999, a rise of 14.67 per cent. According commerce ministry, the last two years have shown a significant step-up in inflow-approval ratio and the current realisation rate of FDI at around 52 per cent.

With this inflow, cumulative FDI inflows into India from January 1991 to December 2000 stood at about $23.6 billion. Total FDI approval between January 1991, and December 2000 stood at $68.3 billion.

Fuels, telecommunications, electrical equipment, computer software and electronics, transportation industry, service sector, metallurgical industry, chemicals, food processing industries and hotel and tourism are among the top sectors in which FDI approvals have taken place.
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NCAER revises GDP growth rate to 6.2%
New Delhi: The NCAER in its quarterly review has marginally scaled up the GDP estimates for 2000-01 to 6.2 per cent from 6.1 per cent. The estimates have been revised upwards on account of the improvement in the performance of the services sector and sustained export performance.

The government estimates released last week had pegged the GDP growth for the year at 6 per cent, 0.5 per cent lower than original projections for the full year. Growth in 1999-2000 was 6.4 per cent.

NCAER boosted its estimate of services sector growth, excluding construction and transportation, to 7.7 per cent from an earlier forecast of 7.47 per cent. The review said that export performance in the first eight months seemed to reflect similar levels of growth for the full year. Currently, exports are growing at around 20 per cent, though agriculture output has remained depressed. The NCAER projected that agricultural growth would remain depressed in the case of winter foodgrain and sugar cane. However, cotton output was expected to be higher.
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QRs may be reimposed for limited period
New Delhi: The government in a bid to arm itself with powers to re-impose quantitative restrictions (QRs) for a `limited' period to prevent sudden surge in imports proposes to introduce a bill in the forthcoming budget session of the parliament.

The cabinet has already cleared the proposed amendments to the Foreign Trade (Regulation & Development) Act, which could be selectively invoked by the government. Mr. Murasoli Maran, commerce minister had earlier stated that the government was likely bringing forward a suitable legislation in the ensuing budget session of parliament to safeguard the interest of indigenous sectors, including industry and agriculture from problems arising out of import surge.

The provision for re-imposition of QRs represents the second instance of contemplated defensive action against a sudden flood of imports. The finance ministry too had earlier brought an amendment to the Customs Tariff Act, 1975, empowering it to impose a safeguard duty to protect the domestic industry from a surge in imports.
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FII funds too banned in print media
Mumbai: Reserve Bank of India (RBI) on Friday made it clear that permission for foreign investments of any kind even other than foreign direct investment (FDI) was being withdrawn for the print media sector with immediate effect.

The RBI clarification has set to rest the controversy over the Rs 50-crore initial public offer of Mid-Day Multimedia, owners of the Mumbai-based Mid-Day afternoon newspaper. The notification said: "facility for acquisition of shares and convertible debentures of Indian companies engaged in print media sector by foreign venture capital investors, foreign institutional investors (FII), as also by non-resident Indians/overseas corporate bodies has been withdrawn with immediate effect".

The restriction will also apply to investment by non-resident Indian and overseas corporate bodies on a non-repatriation basis.
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