Foreign direct investment (FDI) in June rose 310% year-on-year to $5.7 billion — the highest monthly in last 11 fiscal years — in an indication of the revival of investor confidence.
FDI inflows into the country in the corresponding month of the previous year stood at $1.4 billion. FDI inflow in May 2011, too, registered a healthy increase of 111% at $4.7 billion."The figures indicate that the trend of high FDI equity inflows since the beginning of the present fiscal year is being maintained," a statement issued by the commerce and industry ministry said on Monday.
FDI into India increased by 57% to $16.8 billion during the first six months of the 2011 calendar year, the statement said.
However, in the previous fiscal year, equity inflows through the foreign direct investment route dipped 25% amid the uncertain global situation following the recession of 2008 that crippled the global economy.
FDI inflows had slowed down by 25% during the January-March quarter to $18.4 billion, which the government attributed to economic slowdown in the US and the growing crisis threatening Europe.
It declined to $19.4 billion in 2010-11 from $25.6 billion in 2009-10. In 2008-09, FDI stood at $27.3 billion.