The Hindu : Modest rise in FDI flows in April-Aug.

Online edition of India's National Newspaper
Thursday, Oct 10, 2002

Business

Business

Modest rise in FDI flows in April-Aug.

By Our Special Correspondent

NEW DELHI OCT. 9. Foreign direct investment inflows have risen by around 7 per cent in the first five months of the current fiscal (April-August). The moderate rate of FDI inflows reflects not only the global recession but also the fact that border tensions with Pakistan have rendered India an increasingly unattractive investment destination for global investors.

The data for the calendar year released here today by the Commerce and Industry Ministry appears to show a brighter picture with FDI inflows rising by as much as 26.6 per cent during the eight months from January to August this year. However, the fiscal year data reflect more recent trends on the FDI front.

An official release says FDI inflows continue to post "a very positive growth'' during 2002, bringing in $2.85 billion, net of ADRs and GDRs, up to August this year. Compared with the $2.25 billion received in the corresponding period last year, the growth is 26.67 per cent.

On a financial year basis, $1.64 billion of FDI inflows, net of ADRs and GDRs, were received in April-August this year compared with $1.53 billion over the same period in the last fiscal.

This is a rise of 6.92 per cent, but shows that growth of FDI inflows has slowed down in recent months.

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