Machine Tools


FDI Inflows to Machine Tools

bstract:
Potential of FDI Inflows to Machine Tools is high in India. FDI in Machine Tools have increased considerable since 1991 after the Indian economy was opened up to foreign investments.

A brief history of foreign direct investment in the Indian machine tool industry


There is high potential of Foreign Direct Investment (FDI) Inflows to Machine Tools in India. With the rise of the Indian manufacturing industry the simultaneous growth of the Indian machine tool industry is certain. Until the opening up of the Indian economy till the early 1990s, most of the advanced machine tools were brought from technologically advanced countries.

The quantum of foreign direct investment in the Indian machine and tools industry amounted to US $ 155.43 million during the period from August 1991 to December 2005. The cumulative percentage of the foreign direct investment during the same period was 0.52 against the total inflow of foreign direct investment during the same period. Indian machine and tool industry is classified under the "Industrial machinery and electrical equipment" group.

Some key developments in the Indian machine tools industry


One of prime source of foreign direct investment in the Indian machine and tool industry has been the European giant - Germany. The Germany based international giant engineering company "Siemens" has been the fore runner in sourcing foreign direct investments in the machine and tool industry of India. Siemens plans to invest Euro 600 million in the next three to four years for setting up new factories and expanding the existing facilities in India. Further, it has bagged an order for equipping the Bangalore International Airports Ltd with technical systems and tools. Siemens have also forged alliance with ABB in setting up an ultra mega power project. Bosch has plans of setting up machinery and tools for an auto component unit in India, which is expected to attract FDI worth Euro 500 million in the Indian machine and tool industry.

Copy right @ ansarilawin.com All Rights Reserved.