Parliament Question: FDI in Research and Development, Innovation Ecosystem and National R&D Institutions in Andhra Pradesh

GOVERNMENT OF INDIA MINISTRY OF SCIENCE AND TECHNOLOGY DEPARTMENT OF SCIENCE AND TECHNOLOGY LOK SABHA UNSTARRED QUESTION No. 2799 ANSWERED ON 05/08/2026 FDI IN RESEARCH AND DEVELOPMENT, INNOVATION ECOSYSTEM AND NATIONAL R&D INSTITUTIONS IN ANDHRA PRADESH

2799. SHRI MADDILA GURUMOORTHY:

Will the Minister of SCIENCE AND TECHNOLOGY be pleased

to state:

(a) whether the Government has assessed the flow of Foreign Direct Investment (FDI) into Research and Development (R&D) activities in Andhra Pradesh including Tirupati Lok Sabha Constituency during the last three years;

(b) if so, the details of FDI received, sector-wise;

(c) whether any increase or decline has been observed and if so, the details thereof;

(d) whether the Government has taken steps to attract FDI in R&D in sectors such as electronics, semiconductors, biotechnology, space technology and advanced manufacturing and if so, the details thereof;

(e) the details of incentives, research infrastructure and institutional support provided;

(f) whether any proposals have been received for establishing foreign-funded R&D centres, Centres of Excellence or innovation hubs in Andhra Pradesh including Tirupati and if so, the details thereof; and

(g) whether the Government proposes to establish any Government-funded R&D institution, Centre of Excellence or innovation programme in Andhra Pradesh particularly in Tirupati and if so, the details thereof? ANSWER MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF SCIENCE AND TECHNOLOGY AND EARTH SCIENCES (DR. JITENDRA SINGH)

(a) to (c): Research and Development (R&D) sector is not specifically listed under the Foreign Direct Investment (FDI) Policy. In the sectors/activities not listed in the para 5.2 (a) of FDI policy, FDI is permitted up to 100% under the automatic route, subject to applicable laws/regulations; security and other conditionalities. Sector wise FDI Page 1 of 6equity inflow data reported in the state of Andhra Pradesh during April 2023 to March 2026; and financial year-wise FDI equity inflow data in the state of Andhra Pradesh during April 2020 to March 2026 are mentioned in the Annexure here.

(d) to (e): The Government has taken several steps to attract FDI in R&D in sectors such as electronics, semiconductors, biotechnology, space technology and advanced manufacturing. The Government strives to attract larger FDI by bringing policy reforms, financial incentives, infrastructure development, removing regulatory barriers, streamlining processes, bettering logistics and improving the business environment by enhancing the ease of doing business. These include:

Production Linked Incentive (PLI) Schemes across multiple sectors including electronics, advanced manufacturing; Semicon India Programme offering substantial fiscal support for semiconductor fabrication plants (fabs), display fabs, packaging, and design;

Propitious policy frameworks such as BioE3, National Manufacturing Policy; and Institutional support through Anusandhan National Research Foundation for bringing higher level of Science, Technology & Innovation; Biotechnology Industry Research Assistance Council for industry connect; Indian National Space Promotion and Authorization Centre to facilitate private sector participation. Institution of Schemes and Missions like National Quantum Mission; National Mission on Interdisciplinary Cyber-Physical Systems; Sophisticated Analytical & Technical Help Institutes, Fund for Improvement of S&T Infrastructure, National Initiative for Developing and Harnessing Innovations etc.

created a vibrant and enabling ecosystem to attract more FDI in the country.

(f) The Ministry of Science and Technology has not received any proposals for establishing foreign-funded R&D centres, Centres of Excellence or innovation hubs in Andhra Pradesh including Tirupati.

(g) In Andhra Pradesh, institutions such as IIT Tirupati, IISER Tirupati and other research and higher educational institutions have been receiving support under various national R&D and innovation programmes. At present, no separate proposal is under consideration in the Ministry of Science and Technology for establishment of a new R&D institution, Centre of Excellence or innovation programme exclusively for Andhra Pradesh.

Page 2 of 6Annexure FINANCIAL YEAR WISE FDI EQUITY INFLOW FROM April 2023 TO March 2026

State: Andhra Pradesh Sr. Sector 2023- 2024-25 2 025-26 C umulative No. 24 FDI Amount Amount Amount Cumulative (In USD (In USD (In USD Amount Million) Million Million (In USD Million) 1 2 3 4 5 6 1 METALLURGICAL 0.10 11.79 250.67 262.56 INDUSTRIES 2 INDUSTRIAL - 173.07 10.02 183.10 MACHINERY 3 FOOD PROCESSING 3.65 1.64 107.30 112.59 INDUSTRIES 4 CEMENT AND GYPSUM - - 99.90 99.90 PRODUCTS 5 SERVICES SECTOR (Fin., 29.13 0.06 59.96 89.15 Banking, Insurance, Non Fin/Business, Outsourcing, R&D, Courier, Tech. Testing and Analysis, Other) 6 AUTOMOBILE 12.24 8.88 11.08 32.19 INDUSTRY 7 CHEMICALS (OTHER - 18.22 8.28 26.50 THAN FERTILIZERS) 8 LEATHER, LEATHER 14.48 - 6.88 21.36 GOODS AND PICKERS 9 ELECTRICAL 3.47 0.94 16.26 20.67 EQUIPMENTS Page 3 of 6Sr. Sector 2023- 2024-25 2 025-26 C umulative No. 24 FDI Amount Amount Amount Cumulative (In USD (In USD (In USD Amount Million) Million Million (In USD Million) 1 2 3 4 5 6 10 MISCELLANEOUS 0.43 0.22 15.26 15.91 MECHANICAL & ENGINEERING INDUSTRIES 11 CONSTRUCTION 7.79 4.28 1.62 13.69

(INFRASTRUCTURE) ACTIVITIES 12 COMPUTER SOFTWARE 2.27 3.44 3.94 9.65 & HARDWARE 13 CERAMICS 5.31 3.65 0.26 9.23 14 AGRICULTURE 4.25 0.68 1.66 6.59 SERVICES 15 ELECTRONICS 0.0002 0.0008 5.89 5.89 16 DRUGS & 5.08 0.47 0.01 5.56 PHARMACEUTICALS 17 MEDICAL AND 0.69 0.66 2.58 3.94 SURGICAL APPLIANCES 18 TEXTILES (INCLUDING 0.99 0.97 0.96 2.92 DYED,PRINTED) 19 HOSPITAL & 1.55 0.74 - 2.29 DIAGNOSTIC CENTRES 20 NON-CONVENTIONAL - 0.001 1.79 1.79 ENERGY 21 PRIME MOVER (OTHER 0.18 - 1.36 1.54 THAN ELECTRICAL GENERATORS) 22 MISCELLANEOUS 0.02 1.46 0.01 1.49 INDUSTRIES 23 FERMENTATION - - 1.18 1.18 INDUSTRIES Page 4 of 6Sr. Sector 2023- 2024-25 2 025-26 C umulative No. 24 FDI Amount Amount Amount Cumulative (In USD (In USD (In USD Amount Million) Million Million (In USD Million) 1 2 3 4 5 6 24 PETROLEUM & - 0.99 0.007 1.00 NATURAL GAS 25 HOTEL & TOURISM 0.49 0.35 0.04 0.88 26 TRADING 0.004 0.32 0.53 0.86 27 POWER - - 0.75 0.75 28 RETAIL TRADING 0.01 - 0.36 0.37 29 SEA TRANSPORT - 0.18 - 0.18 30 CONSULTANCY 0.001 0.10 - 0.10 SERVICES 31 TIMBER PRODUCTS - 0.02 0.02 0.04 32 EDUCATION - - 0.009 0.009 33 CONSTRUCTION 0.001 - 0.001 0.002

DEVELOPMENT:

Townships, housing, built-up infrastructure and construction development projects 34 MINING 0.001 - 0.0006 0.002 35 TELECOMMUNICATIONS - 0.001 - 0.001

Total: 92.13 233.14 608.59 933.86 *Total FDI inflow includes equity inflow, equity capital of unincorporated bodies, re-invested earnings, and other capital.

Sector/State/Country-wise details are maintained only for equity component of FDI inflow.

Page 5 of 6FINANCIAL YEAR WISE FDI EQUITY INFLOW FROM April 2020 TO March 2026

Sector: SERVICES SECTOR (Fin., Banking, Insurance, Non- Fin/Business, Outsourcing, R&D, Courier, Tech. Testing and Analysis, Other)

Sub Sector: Research & Development (R&D)

State: Andhra Pradesh Sr. No. Financial Year FDI Equity Inflow (In USD Million) 1 2 3 1 2020-21 0.43 2 2021-22 0.44 3 2022-23 0.82 4 2023-24 - 5 2024-25 - 6 2025-26 - Total 1.69 *Total FDI inflow includes equity inflow, equity capital of unincorporated bodies, re-invested earnings, and other capital.

Sector/State/Country-wise details are maintained only for equity component of FDI inflow. ***** Page 6 of 6