FDI up by 43% in April to $3.12 bn

Following three months of consecutive decline, foreign direct investment (FDI) flows into India grew by about 43% to $3.12 billion in April, 2011.

The country received $2.17 billion worth of FDI in April, 2010.

“The figure is showing a recovery in the global markets, especially in European economies,” an official said.

Mauritius, Singapore, the US, UK, Netherlands, Japan, Germany and the UAE are the major investors in India.

In April, the maximum investment came from Singapore ($1.17 billion), followed by Mauritius ($976 million), Japan ($235 million), France ($220) and Cyprus ($170 million).

During the month, the sectors that attracted the maximum FDI during the period include services ($658 million), construction activities ($311 million), power ($256 million), computers and hardware ($96 million), telecommunications ($46 million) and housing and real estate ($38 million).

In January, February and March, 2011, foreign investment inflows dipped by 48% ($1.2 billion), 30% ($1.04 billion) and 11% ($1 billion), respectively, vis-a-vis the corresponding periods in the previous year.

FDI declined by 25% to $19.4 billion in 2010-11 from $25.83 billion in 2009-10, which was also lower than the $27.33 billion invested in the previous fiscal.

However, the Department of Industrial Policy and Promotion (DIPP) has initiated steps, including consolidation of all related rules and regulations into a single document, to boost FDI in the country.

Recently, relaxing FDI norms, the DIPP had allowed Indian companies to issue equity against the import of capital goods and liberalised the conditions for foreign investment for production and development of seeds.

Source:-http://www.livemint.com/2011/06/20132725/FDI-up-by-43-in-April-to-31.html

Thanks
Ankit Wani
Intern @ DENIP Consultants Pvt. Ltd.