Future of the Indian Economy
The Nineth Plan (1996-2000)
- Eradication of poverty
Together with the overall economic growth, the anti-poverty and employment generation programmes have helped in reducing the incidence of poverty over the long run. The poverty ratio declined from 56.4 per cent in 1973-74 to 37.3 in 1993-94 in rural areas and from 49.0 per cent in 1973-74 to 32.4 per cent
in 1993-94 in urban areas. For the country as a whole, the poverty ratio declined from 54.9 per cent in 1973-74 to 36 per cent in 1993-94 (Table 10.6). Large Sample surveys on common expenditure on the basis of which poverty ratios are estimated are not available in subsequent years. Although reduction of the overall poverty ratio in India from 55 per cent to 36 per cent during a period of two decades is significant, India’s performance in poverty reduction has been weak as compared with some of the East Asian countries.
It may be observed from Table 10.7 that the success of some of the East Asian countries (like China and Indonesia) lies in faster economic growth. In general, the faster the rate of overall growth, the faster is the rate of poverty reduction. It is, therefore, reasonable to expect that a sustained and long lasting solution to the problem of poverty depends on creation of opportunities for broad based economic development and higher growth.
TABLE 10.6
Number and Percentage of Population Below Poverty Line
(Number in million and poverty ratio in percentage)
Rural sector Urban sector Combined All India
Year Number Poverty Number Poverty Number Poverty
(million) ratio (million) ratio (million) ratio
1973-74 261 56.4 60 49.0 321 54.9
1977-78 264 53.1 65 45.2 329 51.3
1983 252 45.7 71 40.8 323 44.5
1987-88 232 39.1 75 38.2 307 38.9
1993-94 244 37.3 76 32.4 320 36.0
Source: Planning Commission.
TABLE 10.7
Poverty incidence and growth rates in India and selected Asian countries
(in per cent)
Country Poverty ratio Poverty ratio Annual Reduction Average GDP Average GDP
1975 1995 In 1975-95 growth 1970-1980 Growth 1980-1995
Percentage point
India 54.9 36.0 0.9 3.2 5.6
China 59.5 22.2 1.9 5.0 11.1
Indonesia 64.3 11.4 2.6 7.8 6.6
Korea 23.0 5.0 0.9 9.0 8.7
Malaysia 17.4 4.3 0.7 7.8 6.4
Philippines 35.7 25.5 0.5 6.2 1.4
Thailand 8.1 0.9 0.4 7.2 7.9
Source : For India, Planning Commission; for others World Bank Report on Social Consequences of the East Asian
Financial Crisis, September, 1998.
Note : For India, poverty ratios refer to the years 1973 and 1993 respectively and GDP growth rates are based
on old series with base 1980-81.
Poverty Alleviation and Employment Generation Programmes
· India’s anti-poverty strategy comprises of a wide range of poverty alleviation and employment generation programmes, many of which have been in operation for several years and have been strengthened to generate more employment, create productive assets, impart technical and entrepreneurial skills and raise the income level of the poor. Under these schemes, both wage employment and self-employment are provided to the people below the poverty line.
In 1998-99, government proposed to unify the various poverty alleviation and employment generation programmes under two broad categories of Self Employment Schemes and Wage Employment Schemes. Funding and organisational patterns will also be rationalized to achieve maximum beneficial impact of these programmes. The budgetary (plan) support on Rural Development and Rural Employment & Poverty Alleviation has been enhanced to Rs.9811 crore in 1998-99(BE) from Rs.8290 crore in 1997-98(RE).
· The salient features of some of the major employment and anti-poverty programmes are given below:
(a) Integrated Rural Development Programme (IRDP) and its allied programmes of Training
Rural Youth for Self-Employment (TRYSEM) and Development of Women and Children in Rural Areas (DWCRA) are major self-employment programmes for poverty alleviation. The basic objective of IRDP is to enable identified rural poor families to augment their incomes and cross the poverty line through acquisition of credit based productive assets.
Assistance is given in the form of subsidy by the government and term credit by the financial institutions for income generating activities. This is a centrally sponsored scheme funded on 50:50 basis by the Centre and the states. It is stipulated that at least 50 per cent of the assisted families should belong to Scheduled Caste and Scheduled Tribe categories.
It is also required that at least 40 per cent of those assisted should be women under this programme. About 535 lakh families have been covered up to November 1998 since 1980-81 under the programme out of which coverage of SC/ST families had been 45 per cent. The level of per family investment is currently more than Rs.17441 compared to Rs.1642 during 1980.
· A sum of Rs.800 crore (including Rs. 60 crore for Rural Artisans) has been provided in 1998-99 (BE), an increase of about 45 per cent over 1997-98 (RE).
(b) The Training of Rural Youth for Self-Employment (TRYSEM) is to train rural youth from the target group of families in skills so as to enable them to take up self/wage employment. It has been laid down that the coverage of youth from SC and ST communities should be at least 50 per cent of the rural youth trained. Out of the total beneficiaries, at least 40 per cent should be women.
(c) The Programme of Development of Women and Children in Rural Areas (DWCRA) aims to improve the socio-economic status of the poor women in the rural areas through creation of group of women for income generating activities on a self-sustaining basis. Up to November, 1998, 1.97 lakh women were benefited during 1998- 99. A sum of Rs.100 crore has been provided in 1998-99 (BE).
(d) Jawahar Rozgar Yojana (JRY) is a wage employment programme with its main objective of generation of employment in the lean agriculture season to the unemployed and under-employed rural people both men and women living below the poverty line. The significant aspect of the scheme is that it is implemented by the Panchayats at the village, block and district levels in the ratio of 70:15:15 respectively. An amount of Rs.2095 crore has been allocated during 1998-99 (BE) for JRY. Against a target of 396.66 million man-days during 1998-99, a total of 190.28 million man-days were generated up to November 1998 with an expenditure of Rs.1244 crore.
(e) The Employment Assurance Scheme (EAS) has been universalized so as to make it applicable to all the rural blocks of the country. It aims at providing 100 days of unskilled manual work up to two members of a family in the age group of 18 to 60 years normally residing in villages in the lean agriculture season, on demand, within the blocks covered under EAS. A sum of Rs.1990 crore has been provided during 1998-99 (BE). During 1998-99, a total of 237.61 million man-days have been generated under the scheme with an expenditure of Rs.1572 crore up to November 1998.
(f) The Million Wells Scheme (MWS) which was earlier a sub-scheme of JRY, is funded by the Centre and states in the ratio of 80:20. The objective of the MWS is to provide open irrigation wells free of cost to poor, small and marginal farmers belonging to SCs/STs and freed bonded labour. A sum of Rs.450 crore has been provided in 1998-99 (BE). Up to November 1998, a sum of Rs. 225.90 crore has been incurred during 1998-99 and 49821 wells were constructed.
(g) The National Social Assistance Programme (NSAP) recognises the responsibility of the Central and state governments for providing social assistance to poor house-holds in case of maternity, old age and death of bread earner. NSAP is a centrally sponsored programme with 100 per cent central funding to the States/Uts that provides benefits under its three components
(i) National Old Age Pension Scheme (NOAPS);
(ii) National Family Benefit Scheme (NFBS)
(iii) National Maternity Benefit Scheme (NMBS).
On the basis of suggestions made by the Central Advisory Committee on NSAP, the Government has since approved changes relating to enhancement in the rate of benefits for NFBS and NMBS. A sum of Rs.700 crore has been provided for the above three components of NSAP in 1998-99 (BE).
(h) The Swarna Jayanti Shahari Rozgar Yojana (SJSRY) which came into operation from 1.12.1997, sub-summing the earlier urban poverty alleviation programmes with Nehru Rozgar Yojana (NRY), Urban Basic Services Programme (UBSP) and Prime Minister’s Integrated Urban Poverty Eradication Programme (PMIUPEP).
The scheme aims to provide gainful employment to the urban unemployed or underemployed poor by encouraging the setting up of self-employment ventures or provision of wage employment. It is being funded on a 75:25 basis between Centre and the states. It comprises two special schemes i.e. The Urban Self-Employment Programme (USEP) and the Urban Wage Employment Programme (UWEP).
The scheme gives a special impetus to empowering and uplifting the poor women and launches a special programme, namely, Development of Women and Children in urban areas under which groups of urban poor women setting up self-employment ventures are eligible for subsidy up to 50% of the project cost. During the year 1997-98, a sum of Rs.98.63 crore was released to States and UTs under SJSRY. A sum of Rs.189 crore has been provided in 1998-99 (BE) out of which Rs.64.59 crore has been released to twelve states till 30.11.1998.
Prime Minister’s Rozgar Yojana (PMRY) for providing self-employment to educated unemployed youth had been designed to provide employment to more than a million persons by setting up of seven lakh micro enterprises in Eighth Plan. During the Eighth Plan, loan in 7.70 lakh cases were sanctioned and 5.76 lakh cases disbursed.
The scheme is being continued in the Ninth Plan. Since inception of the scheme up to the programme year 1997-98, over 7.52 lakh cases have been disbursed. During 1998- 99, 57527 cases have been sanctioned loans and 27533 cases disbursed by the end of October, 1998. A sum of Rs.110 crore has been provided in 1998-99 (BE). The achievements of the special anti-poverty programmes are indicated in Table 10.10.
TABLE 10.10
Performance of Special Employment and Poverty Alleviation Programmes
(In lakh)
Programmes 1996-97 1997-98(P) 1998-99(P)
(upto Nov. 98)
Target Achievement Target Achievement Target Achievement
A. Programmes in Rural Areas
1. JRY- Mandays of employment generated 4141.4 4006.3 3864.9 3883.7 3966.6 1902.8
2. EAS - Mandays of employment generated * 4030.0 * 4717.7 * 2376.1
3. IRDP- Families assisted * 19.2 * 17.1 * 7.7
4. TRYSEM- Youths Trained 2.9 3.6 3.0 2.5 2.9 0.8
5. DWCRA- (a) Groups formed 0.3 0.4 0.3 0.4 0.6 0.2
(b) Membership - 5.8 - 4.6 - 2.0
6. IAY-House Constructed 11.2 8.0 7.2 7.7 9.9 3.6
7. MWS- Wells Constructed - 1.1 - 1.0 - 0.5
8. ARWSP- Habitation/villages 1.0 1.0 1.0 1.2 1.1 0.5
9. CRSP-Sanitory latrine 8.3 12.2 18.8 11.6 16.0 5.6
10. NSAP —
(a) NOAPS- Beneficiaries 53.7 46.6 48.7 40.3 48.8 40.2
(b) NFBS- Beneficiaries 4.6 1.6 2.7 1.8 2.1 1.4
(c) NMBS- Beneficiaries 46.0 14.0 25.7 15.4 17.8 6.6
B. Programmes in Urban Areas
1. NRY-(a) Families assisted 1.2 0.6 **
(b) Mandays of employment generated 135.8 44.6
(c) Persons trained 1.2 0.4
C. Other Programmes
1. PMRY -(a)Micro-enterprises @ 2.2 2.2 2.2 1.8 2.2 0.3#
(b)Employment generated $ 4.4 3.2 4.4 2.6 4.4 0.4#
2.. SJSRY $$ of which
(i) USEP —
(a) Beneficiaries * 0.2##
(b) Persons trained * 0.2##
(ii) UWEP- Mandays of employment generated * 12.9##
P Provisional.
* Targets are not fixed.
$ Estimated @ 1.5 per case disbursed for the concerned programme years.
** Merged with SJSRY.
@ Cases disbursed.
$$ Came into operation from Dec 97.
# Up to Oct 98
## As per report ending Dec 98
Source: Ministry of Rural Areas & Employment and other concerned Departments.
· Increase Literacy and Improve Education System
Building on educational priorities set out in the National Policy on Education, 1986 as modified in 1992 and its Programme of Action, the National Agenda for Governance (NAG) has education amongst its highest priorities. The following educational agenda has been specifically identified:—
(i) Education for All
– Free and compulsory primary education up to 5 th standard and total eradication of illiteracy.
(ii) Education of prioritised groups
– girls, SCs/ STs and Backward classes and educationally backward minorities.
(iii) Access and quality
– equal access and opportunity for all up to school stage and improvement of quality at all levels.
(iv) Financing of education
– increase in government and non-government spending on education, and bringing this up to 6 per cent GDP level.
In addition, the item on harnessing of youth power makes a specific mention of its involvement in the total eradication of illiteracy. The items dealing with Constitutional and Legal Reforms, and Information Technology have important implications for educational planning and management in particular.
In pursuance of the emphasis embodied in the National Policy on Education and reiterated in the NAG, several schemes have been launched by way of central intervention, primarily for meeting the needs of the educationally disadvantaged and for strengthening the social infrastructure in the sector.
The important schemes by way of illustration are Operation Black Board (OB), Non-Formal Education (NFE), Teacher Education (TE), National Programme of Nutritional Support to Primary Education (NPNSPE) (Mid-day Meal Scheme), District Primary Education Programme (DPEP), Total Literacy Campaign (TLC), Community Polytechnics (CP), Shiksha Karmi Project (SKP), Area Intensive Programme for Educationally Backward Minorities (AIPEBM) and Integrated Education for Disabled Children, etc. Several resource institutions have either been strengthened/established to achieve the objectives of the NPE.
As per the report given by the National Sample Survey Organisation (NSSO), the overall National figure for literacy has gone up from 52.2 per cent in 1991 to 62 per cent in 1997. The male literacy has gone up from 64.1 per cent to 73 per cent and the female literacy from 39.3 per cent to 50 per cent during the same period. The literacy percentage has also gone up substantially in some of the educationally backward states. Since independence, India has tripled its literacy (female literacy increased by five times).
The Gross Enrolment Ratio (GER) in the primary stage (classes I-V) increased from 42.6 per cent in 1950-51 to 89.7 per cent in 1997-98 and in the upper primary stage (classes VI-VIII) from 12.7 per cent to 58.5 per cent over the same period. The percentage of girls’ enrolment to total enrolment has increased from 28.1 in 1950-51 to 43.6 in 1997-98 in the primary stage and increased from 16.1 to 40.1 over the same period in the upper primary stage. 18. The dropout rate of girls is much higher than that of boys at both the stages.
The enrolment of SCs and STs has increased considerably at the primary stage. The share of enrolment of SCs has increased from 17.1 per cent in 1986 to 19.6 in 1993 at primary stage and from 14.7 to 15.6 over the same period at upper primary stage. Similarly, the share of enrolment of STs has increased from 7.8 per cent in 1986 to 9.1 per cent in 1993 at primary stage and from 5.1 per cent to 5.9 per cent over the same period at upper primary stage.
Moreover, substantial increase in the share of girls’ enrolment belonging to these communities has also taken place. 19. In order to improve the internal efficiency and minimum level of learning, at the school level, the Central government has taken three important initiatives since 1993, namely, Area Intensive Programme for Educationally Backward Minorities (AIPEBM), District Primary Education Programme (DPEP) and National Programme of Nutritional Support to Primary Education (NPNSPE) (Mid-Day Meal Scheme).
The government proposes to formulate and implement plans to gradually increase the governmental and non-governmental spending on education up to 6 per cent of GDP. Planning Commission has set up an Expert Committee to assess the current status of expenditure on education, both in public and private sector. The central plan allocation on education has been enhanced from Rs.3350 crore in 1997-98 (RE) to Rs.4245 crore in 1998-99 (BE). In order to initiate plan to implement the provisions of National Agenda for Governance, the current year’s budget (plan and non-plan) provides for nearly 50 per cent increase i.e.from Rs.4716 crore in 1997-98(RE) to Rs.7047 crore in 1998-99(BE).
· Encouraging FDI
Policies on Foreign Investment
Several measures to boost FDI have been announced in 1998-99. Projects for electricity generation, transmission and distribution as also roads and highways, ports and harbours, and vehicular tunnels and bridges have been permitted foreign equity participation up to 100 per cent under the automatic route, provided foreign equity does not exceed Rs. 1500 crore. FDI permissible under Non-Banking Financial Services now includes “Credit Card Business” and “Money Changing Business”.
Regarding equity participation in private sector banks, multilateral financial institutions have been allowed to contribute equity to the extent of the shortfall in NRI holdings within the overall permissible limit of 40 per cent. The Government has also decided to permit FDI up to 49 per cent of the total equity, subject to license, in companies providing Global Mobile Personal Communication by Satellite (GMPCS) services. Also, minimum capitalisation norms earlier required for pure financial consultancy services have been relaxed. GDR/ADR guidelines have been further liberalised in 1998-99. Unlisted companies are now permitted to float Euro issues under certain conditions.
All end-use restrictions on GDR/ADR issue proceeds have been removed, except the prevailing restrictions on investment in stock markets and real estate. The 90-day validity period for final approvals of GDR/ADR issues has been withdrawn and final approval will continue to be valid, thereby imparting greater flexibility to issuing companies regarding the timing of issues. Indian companies are now permitted to issue GDRs/ADRs in the case of Bonus or Rights issue of shares, or on genuine business reorganisations duly approved by the High Court. The companies, however, in all such cases, will be required to get approval from the Department of Economic Affairs for the issue of GDRs/ADRs.
Portfolio Investments – NRIs
A number of liberalization measures have been taken in 1998-99 to promote portfolio foreign investment. In order to avoid NRIs being crowded out by FIIs, the aggregate ceiling for investment in a company by all NRIs/PIOs/OCBs through stock exchanges has been made separate and exclusive of the investment ceiling available for FIIs.
In addition, the aggregate investment ceiling for NRIs/PIOs/OCBs has been raised from 5 per cent to 10 per cent of the paid up capital of a company. In the case of listed Indian companies, the ceiling can be raised to 24 per cent of the paid up capital under a General Body Resolution.
Also, the investment limit by a single NRI/PIO/OCB has been enhanced from 1 per cent to 5 per cent of the paid up capital. Policy pertaining to investment in unlisted companies has also been liberalised. NRIs/PIOs/OCBs are now permitted to invest in unlisted companies. However, while investing in unlisted companies, the same norms and approval procedures applicable to portfolio investments in listed companies will apply, and it will be subject to the same investment ceilings as in the listed companies.
Portfolio Investments—FIIs
FIIs can purchase and sell Government Securities and Treasury Bills within overall aproved debt ceilings. To facilitate better risk management by investors, authorised dealers have been permitted to provide forward cover to FIIs in respect of their fresh equity investments in India. Moreover, transactions among FIIs with respect to Indian stocks will no longer require post-facto confirmation from the RBI. Also, 100 percent FII debt funds have been permitted to invest in unlisted debt securities of Indian companies.
External Commercial Borrowings (ECBs)
The higher net inflows of U.S.$ 3,999 million of ECBs in 1997-98 compared to U.S.$ 2,848 million in 1996-97 reflected lower amortization. Disbursements in 1997-98 stood at U.S.$ 7,371 million, which was marginally lower than U.S.$ 7,571 million recorded in 1996-97. ECB approvals in 1997-98 have been placed at U.S.$ 8,712 million, which is slightly higher than the level in 1996-97.
Regarding sectoral allocation, power accounted for the highest approvals of U.S.$ 3 billion, followed by telecom with U.S.$1.5 billion (Table 6.11). In 1998-99 up to 23.12.98, approvals have been placed at U.S.$ 3,804 million. The reduced attractiveness of ECB of the corporate sector has been underscored by a very steep decline in actual disbursements to U.S.$ 1.6 billion (excluding U.S $ 4.2 billion on account of RIBs) in the first two quarters of 1998-99 compared to U.S.$ 4.3 billion in the same period last year.
Increase in cost of ECB funds has come about due to a general increase in the risk premium for emerging market borrowers, downgrades by international credit rating agencies and the rise in forward premia. After several years of unchanged or slightly improving ratings, major rating agencies started to re-examine our ratings in early 1997 (Table 6.12). Both the deteriorating external environment and persistent large fiscal deficits have been cited as the main reasons for downgrading.
ECB is approved by the Government within an annual ceiling that is consistent with prudent debt management, keeping in view the balance of payments position. The existing ECB policy was reviewed in 1998-99 in light of the financial needs of various sectors and the impact on international markets of both the East Asian crisis and economic sanctions. Regarding the sectoral requirements, infrastructure and exports continue to be accorded high priority in ECB allocation. The changes in the ECB guidelines are summarised in Box 6.3.
Non-Resident Deposits
The Resurgent India Bond (RIB) scheme, launched in the current financial year, was open to both NRIs/OCBs and the banks acting in fiduciary capacity on behalf of them. The scheme, that opened on August 5, 1998 and closed on August 24, 1998, mobilised U.S.$ 4.2 billion. The interest rates on these five year bonds were 7.75 per cent for U.S. dollar, 8 per cent for Pound Sterling, and 6.25 per cent for Deutsche Mark. Other features of RIBs include joint holding with Indian residents, allowing them to be gifted to Indian residents, easy transferability, loanability, premature encashment facility, and tax benefits.
Net inflows under non-resident deposits declined from U.S.$ 3,314 million in 1996-97 to U.S.$ 1,119 million in 1997-98 (Table 6.13). The outflow under FCNRA continued due to redemption payment. Also, the relative rates of return and the perceived risk premium on emerging market debt has influenced the flows into these accounts.
Some of the domestic policy-related factors which seem to have contributed towards subdued net flows include imposition of incremental cash reserve ratio of 10 per cent on non-resident deposits and the linking of interest rates under FCNR(B) with LIBOR, which had the effect of lowering interest rates offered under this scheme, and thereby reducing its attractiveness. In order to encourage mobilization of long-term deposits, and concomitantly to discourage short-term deposits, the interest rate ceiling on FCNR(B) deposits of one year and above was raised and the ceiling on such deposits below one year was reduced in April, 1998.
As at the end of March 1998, outstanding balances under various non-resident deposit schemes stood at US$ 20,367 million. Comparison of estimated net flows under non-resident deposits during April-November 1998 vis-à-vis the corresponding period in 1997 shows a compositional shift in favour of Rupee denominated accounts in response to policy initiatives undertaken in 1997-98.
Net inflows under non-residents deposits, (excluding redemption payments under FCNRA which had since been discontinued) at US $ 367 million during April-November, 1998 were substantially lower than those of US $ 2266 million in the same period of 1997. Positive flows have been recorded only in the NR(E)RA and NR(NR)RD schemes. The initiatives in terms of freeing of interest rates and removal of incremental CRR, may have acted as incentives to attract deposits in these accounts.
External Assistance
Gross disbursements under external assistance have declined modestly from US$3,056 million in 1996-97 to US$2,877 million in 1997-98. Amortization payments in 1997-98 were US$ 1,978 million as against US$ 1,947 million in 1996-97. Net inflows, therefore, declined from US$1,109 million in 1996-97 to US$ 899 million in 1997-98. Gross disbursements during April-September, 1998 was lower at US$830 million compared to US$1,066 million during the corresponding period of the previous year. Repayments were nearly the same at US$ 965 million during April-September, 1998 as compared to U.S. $ 976 million during the same period in the previous year. Net disbursements, therefore, declined from US$ 90 million during April-September, 1997 to -US$135 million during April-September, 1998.
BOX 6.3
Changes in ECB guidelines, 1998-99
(Position as of December, 1998)
(i) The cooling-off period for making a fresh application for ECB was reduced from six months to three months with effect from 30.4.98, and subsequently to one month with effect from 10.7.98.
(ii) Proceeds of ECB can now be deployed for project related rupee expenditure in all sectors subject to certain conditions.
(iii) The limit under the ‘US$ 3 million scheme’ has been raised to US$ 5 million. Small borrowers, therefore, can now avail of a higher borrowing limit than before. The Government has also delegated ECB sanctioning power to RBI up to US$ 10 million under all the ECB schemes.
(iv) The minimum maturity requirement under various ECB schemes has been revised as follows:
(I) US$ 3 million scheme with 3 years simple maturity now stands revised to US$ 5 million scheme with 3 years simple maturity;
(2) the minimum average maturity has been fixed at 3 years for ECB up to US$ 20 million, and 5 years for larger amounts ( as against 3 years for US$ 15 million, and 7 years for amounts greater than US$ 15 million earlier);
(3) ECB of any amount by 100% EOUs need an average maturity of 3 years.
(v) ECB eligibility under the scheme for exporters. ECB eligibility under the scheme for exporters has been raised to three times ( from two times earlier) the average export performance during last three years subject to a maximum of US$ 100 million.
(vi) Average maturity requirement for ECB under the long term maturity window which is outside the ECB cap is reduced from 10 years to 8 years for borrowing up to US$ 100 million, and from 20 years to 16 years for borrowing up to US$ 200 million for general corporate objectives.
(vii) In order to enable the corporates to hedge exchange rate risk, domestic rupee denominated structured obligations have been permitted to be credit-enhanced by international banks/ international financial institutions/joint venture partners.
(viii) Prepayment of ECB by Indian corporates has been allowed if this is met out of inflow of foreign equity.
TABLE 6.7
FDI by Host Region (US $ Million)
Country 1992 1993 1994 1995 1996 1997 e
China 11156 27515 33787 35849 40800 45300
India 233 574 973 1964 2382 3264
Indonesia 1777 2004 2109 4348 6194 5350
Korea, Rep. 727 588 809 1776 2325 2341
Malaysia 5183 5006 4342 4132 4672 3754
Philippines 228 1238 1591 1459 1520 1253
Thailand 2114 1804 1322 2002 2268 3600
All developing countries including China 51108 72528 95582 105511 129813 148944
Share of India in developing countries (%) 0.5 0.8 1.0 1.9 1.8 2.2
Source : World Investment Report, United Nations, 1998.
‘e’ : estimates.
Note : Figures for India in this table may not be comparable with those in other tables because of differences in coverage and
source of information
TABLE 6.10
Foreign Direct Investment : Actual Flows vs. Approvals
1991 1992 1993 1994 1995 1996 1997 1998* Total
(91 to 98)
Approvals
Rs crore 739 5256 11189 13590 37489 39453 57149 25103 189968
US$ million 325 1781 3559 4332 11245 11142 15752 6132 54268
Actual Inflows
Rs crore 351 675 1786 3009 6720 8431 12085 8433 41490
US$ million 155 233 574 958 2100 2383 3330 2073 11806
Actual Inflows as %
of Approvals 47.7 13.1 16.1 22.1 18.7 21.4 21.1 33.8 21.7
(In US $ terms)
Source : RBI
* : Upto September, 1998. Figures are provisional.
Note : The approval and actual inflows figures include NRI direct investments approved by RBI.
TABLE 6.11
Status of ECB Approvals
(US $ Million)
Sector 1996-97 1997-98 1998-99*
Power 1874 3014 2733
Telecom 289 1492 75
Shipping 146 210 36
Civil Aviation 45 373 0
Petroleum & Natural Gas 783 230 40
Railways 144 179 15
Financial Institutions 1502 795 50
Ports, Roads, etc. 0 61 0
Others (including exporters) 3797 2358 855
Total 8580 8712 3804
* as on 23.12.98
Source : ECB Division, Ministry of Finance, Government of India.
