FDI inflows rise by record 310% in June

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. HT reports.

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.

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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.