Investment inflow influences the economic development of the region in particular and the country in general. Higher FDI inflow brings in new technology, enhances the quality of human capital and creates a strong competitive base for its overall development.

FDI Inflow into Delhi

Among all the Indian states, in terms of regions attracting the highest amount of FDI, Delhi and the National Capital Region (NCR) received Rs318.61 billion, which is 23.42% of the total FDI inflows between January 2000 - December 2006 next to Mumbai (including Maharashtra, Dadra and Nagar Haveli, Daman and Diu) with Rs338.86 billion (24.91%).

The largest investment attracting sectors in Delhi have been electrical equipment, the services sector, telecommunications, and transportation industry followed by chemicals, food processing industries, drugs & pharmaceuticals, metallurgical industries, cement and gypsum products etc.

The state government is able to attract higher FDI in real estate sector and wants simpler norms for FDI to attract large construction projects. This could ensure a huge inflow of foreign investments into Delhi. Actually 100% FDI is already allowed in integrated townships. But the policy initiated by the government requires that the minimum size of the project should be 100 acres. Acquiring such a large piece of land in a city like Delhi is not very practical. That''s why in the past five years since the liberalization of FDI in this sector, only eight projects have been cleared.

Industrial Entrepreneur Memorandum (IEMs)