The stock of FDI in India at the end of 2014, based on data UNCTAD, was over $252 billion, among the lowest among the BRICS, ahead of only South Africa ($145 billion). India's share of the world total has increased slightly, reaching 1,025% in 2014 compared to 0,972% five years earlier. With reference to Indian FDI abroad, in 2014 these amounted to approximately 130 billion, equal to 0,53% of the world total. However, the data reported by Intesa Sanpaolo show for 2015 a strong increase in incoming flows: last year they would have reached around 39,3 billion, compared to 28,8 billion in the previous year, with a tendential increase of around 37%. If you take a look at the countries of origin, the capital appears to come mainly from Asian markets: however, the figure is distorted by the presence of transit countries such as Mauritius and Cyprus. In fact, Mauritius is the first investing country, with a share of about 34% of total FDI. Singapore follows with 15,5%, the United Kingdom with 8% and Japan with 7%. Among the major European countries, the Netherlands (6%), Cyprus and Germany (3%) hold an important share. Italy is only in 15th place, with a share contained at 0,6%. The main destination sectors of FDI flows entering from 2000 to 2015 are those of services (17%), construction and infrastructure (9%), computers, software and hardware (7%), telecommunications (6,5%) and automotive (5%).
As reported by analysts, despite the recent liberalization of foreign investment in the retail sector, all investments in the production of cigars, cigarettes and tobacco substitutes, aerospace and defense equipment remain subject to prior government authorization, items reserved for small businesses the foreign investment exceeds 24% of the capital, initiatives in which the foreign partner involved has a previous technical/financial collaboration in India in the same sector, in the production of distillates and alcoholic beverages, in the mining and construction sectors, as well as to all entrepreneurial initiatives that are subject to maximum limits for foreign investment. Furthermore, foreign direct investments in gambling and betting, lotteries, atomic energy production, micro-finance (chit funds) and rail transport are not permitted.
Since 2005, around 400 Special Zones have been established for industry and export. The benefits for investors are of a fiscal and administrative nature, linked to more simplified accounting, and lower, if not completely absent, local property taxes and customs duties. Some of them are dedicated to the production of computers and electronic material, others to telecommunications or jewellery, while others are commercial or intended for infrastructures. In this scenario, trade in 2015 reached 655 billion (-15,7% compared to the previous year). Exports (264 billion, -16,9%) were lower than imports (391 billion, -15,0%). Commercial exchanges are mainly carried out with the Asian and European markets, in particular with China (11%), USA (9%), United Arab Emirates (8%), Saudi Arabia (4%). The Asian continent is the main supplier (58,6%) and buys almost half of India's exports (49,5%), while Europe has a share of around 20% in both directions. The product detail sees the prevalence between imports of minerals (29%), machinery (19%), glass and ceramic beads (16%), chemicals (10%), metals (7%). Important exports include textiles and clothing (17%), stones, glass and ceramics (16%), minerals (13%), chemical products (13%) and agri-food (12%).
Italian trade with India in 2015 amounted to 7,4 billion euros, the second largest amount of the last decade (the maximum was recorded in 2011 with 8,5 billion euros). Imports amounted to 4 billion, down 4,1% YoY, while exports reached 3,4 billion, an increase of 10,3%. The net balance is historically negative and in 2015 the deficit was 700 million euro (1,1 billion at the end of 2014). If the share of trade with India on the Italian total last year fell to 0,9%, the net balance by category shows a surplus in mining products, wood, paper and printing, pharmaceutical products, mechanical electrical electronic and optical machinery, while there is a deficit for agricultural and food products, textiles and clothing, refined petroleum products and chemicals, rubber and plastic items, metals and means of transport.
For their part, About 2015% of direct exports to India in 38 were mechanical machinery (42% in 2010). The share of chemical products increased, rising to 11% from the previous 8%., while metals have seen their weight adjust from 12% in 2010 to the current 11%. Transportation has dropped from about 11% in 2010 to 6%. The share of rubber and plastic is growing, going from 4% in 2010 to almost 5% in 2015. In particular, India plays an important role as a supplier of coffee, tea and spices, textile items, leather and leather goods, footwear, knitted and fabric clothing items and accessories, fish and shellfish, iron and steel and their products. Among exports, it is important to point out the increase in the share of the earth, salts, sulphates, stones and cement, organic chemistry and paper sectors. Italy supplies over 12% of India's total import of leather, hides and leather goods, 6% of salts, sulphates, earth, cement and building materials, 5,6% of iron and steel articles, 4,7% of machinery, 4,6% of paper and paper articles, 4,5 .XNUMX% of pharmaceuticals. And, in turn, India exports 12,5% of the total leather and hides to Italy, 7% of iron and steel, 6,7% of coffee, tea and spices, 6,4% of leather goods and leather goods.
