FDI Dips by 50 Percent to $1.16 Billion in Oct
Monday, 26 December 2011, 17:48 IST
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New Delhi: Reflecting economic slowdown in the world's major economies, foreign direct investment (FDI) into India dipped by over 50 per cent to US.$1.16 billion in October for the second month in a row. The country had received U.S$2.33 billion overseas investment in the same month last year. In September, the inflows were at U.S$1.76 billion, down by 16.5 per cent year-on-year. However, during the April-October period, the foreign direct investment went up by 50.3 per cent to U.S$20.8 billion, from U.S$13.84 billion in the year-ago period as inflows were robust in the initial months, a senior government official said. While in August foreign investment inflows had increased over two-fold to U.S$2.83 billion, year-on-year, in July they declined after a significant jump for two consecutive months - May and June. Despite uncertainties in the global economy, the foreign direct investment may touch U.S$35 billion in 2011-12, as against U.S$19.4 billion in the last fiscal on account of major deals like RIL-BP and Posco, the finance ministry official added. In 2010-11, equity inflows through the foreign direct investment route had dipped 25 per cent to U.S$19.43 billion, from U.S$25.6 billion in 2009-10. In 2008-09, foreign direct investment stood at U.S$27.3 billion. According to experts, uncertain economic conditions in the U.S and Europe are one of the major reasons for the declining foreign direct investment in India. Mauritius, Singapore, the U.S, the UK, the Netherlands, Japan, Germany and the UAE are major sources of FDI for India. During April-October, the sectors that attracted the maximum foreign direct investment include services, construction activities, power, computers and hardware, telecom and housing and real estate. Wooing global investors by easing foreign direct investment procedures, the Reserve Bank said that transfer of shares between Indians and non-residents will not require its permission in several key areas like financial services.
Source: PTI
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