In an indication of revival of foreign investor confidence in the Indian economy, the foreign direct investment (FDI) inflows into India witnessed a massive 310 per cent increase in June and stood at $5.65 billion, the highest monthly inflow in the last 11 financial years.
In June, 2010, FDI inflows into the country amounted to $1.38 billion. FDI flows were also very high in May, 2011, with the country receiving foreign investment worth $4.66 billion, a jump of 111 per cent vis-a-vis the same period last year.
In the April-June period of the current fiscal, FDI went up by a massive 133 per cent to $13.44 billion from $5.77 billion in the corresponding period last year. "The figures indicate that the trend of high FDI equity inflows since the beginning of the present financial year is being maintained," a statement from the Commerce and Industry Ministry said here on Monday.
During the first six months of the 2011 calendar year, FDI increased by 57 per cent year-on-year to $16.83 billion, it said. In the previous fiscal, equity inflows through the FDI route dipped 25 per cent amid the uncertain global situation following the recession of 2008. In 2010-11, FDI into India declined to $19.43 billion from $25.6 billion in 2009-10. In 2008-09, FDI stood at $27.3 billion.
FDI inflows had slowed down by 25 percent in the January-March quarter to $18.4 billion which the government attributed to economic slowdown in the US and Europe. India Inc had blamed lack of clear cut policy on a number of issues, rigid bureaucratic red-tapism involving business, and complex labour and tax laws which had prevented foreign investors from actively bringing in funds into India.
