Inward FDI to India Crosses US$100 Billion Threshold

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Oct. 5 – Foreign direct investment into India has soared beyond the US$100billion mark from investments made since 2000, signs that the country is increasingly being seen as a safe source for FDI, with plenty of investment potential and rewards on offer for investors.

The cumulative FDI inflows since 2000 and up to July 2009 amounted to US$100.33 billion. The inflows in the first four months of the current financial year amounted to US$10.5 billion, according to data compiled by the Department of Industrial Policy and Promotion. The largest source of investments came from Singapore, the United States, Great Britain, the Netherlands and the offshore jurisdiction of Mauritius.

“This is a reflection that India is being taken as a safe and dynamic destination for investment as the economy is growing at 6 percent. The investors also want to diversify their portfolio from China by investing here,” Rajiv Kumar, CEO and director of Icrier, told the Times of India. The FDI would further improve if the economic recovery continues.

“We did not receive much FDI initially…since 2008 we have started receiving good numbers…there are signs of economic recovery in a few countries and I think inflows will improve with the economic recovery,” said Crisil principal economist D K Joshi.

“The fact that this huge figure has been reached in such a short time frame and shows every sign of accelerating demonstrates the renewed ability for foreign investors to cut through previously restrictive red tape and now truly get things done in the country,” said Chris Devonshire-Ellis, publisher of India Briefing and managing partner India for the foreign investment consultancy Dezan Shira & Associates. “India over the next decade will perform in a similar manner to that seen in China over the past fifteen years. Both the rewards and the inherent risk are at highly acceptable levels.”