Assocham sees sharp recovery in FDI
New Delhi: Associated Chambers of Commerce and Industry (Assocham) has said that 1999-2000 saw a sharp recovery in foreign investment inflows. This is primarily due to greater recourse to the international capital markets by Indian companies and increase in portfolio investment from $2,401 million in 1998-99 to $5,181 million.

During the year there was a sharp upsurge in foreign investment in food and dairy products from $112 million in 1997-98 to $121 million in 1999-2000, it said in a report.
The industry & trade body also noted that engineering, chemicals and electronic equipment continued to attract the bulk of the foreign investment at $326 million and $172 million, respectively, in 1999-2000. However, there was a sharp decline in investments in the financial sector, which dropped from $185 million in 1998-99 to $20 million in 1999-2000.

Mauritius and USA continued to corner the bulk of foreign investment inflows in 1999 2000 ($856 million), German investments into India, however, declined sharply to $31 million in 1999-2000 from $114 million in 1998-99 and $151 million in 1997-98.
Likewise, investment from South Korea dwindled from $333 million in 1997-98 to $85 million in 1998-99 to touch a low of $8 million in 1999-2000.
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Levy of excise on MRP hits white cement industry Mumbai: The white cement industry has been badly hit, following the central notification to include white cement in the list for items for levy of excise duty. The new levy rates, based on maximum retail price (MRP) rates, effective from December 1, 2000, is expected raise the excise rate to approximately 47 per cent, severely straining the industry bottom-lines.

Grasim and JK Cement are the major producers of white cement in the country. While Grasim, with the Birla White brand, has a capacity of 3.6 lakh tonnes, JK has a capacity of 2.4 lakh tonnes. The Indian white cement industry has an installed capacity of 6.8 lakh tonnes and the operating capacity, at present, stands at 6 lakh tonnes.

Industry sources say that excise duties, taxes, freight and handling expenses, besides providing for reasonable margins for stockists and dealers, work out to 58 per cent to 62 per cent. The lower abatement percentage fixed by the government will further increase the delivered cost of white cement and affect seriously its demand growth.
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