India Sees Strong FDI despite Global Recession Fears
Aug. 12 – Foreign direct investment (FDI) in India increased over 400 percent in June, reaching US$5.65 billion, contrasted to US$1.38 billion in June 2010. According to India’s Department of Industrial Policy and Promotion (DIPP), there has been a sharp increase in inflows due to the fact that several scheduled projects are finally materializing. June also marked highest monthly inflow in over 10 years. According to officials from the DIPP, the figures will be maintained in the coming months as well.
FDI inflows were also very impressive in May 2011 at US$4.66 billion, which was double the level witnessed in May 2010.
The government of India also approved a US$7 billion stake acquisition by U.K.-based BP in Reliance Industries Ltd’s oil and gas acreages, which could also increase the inflow on account of proposed investment. Also, the government has approved the much-delayed Posco steel venture in Orissa, where investment could be in the order of US$13 billion.
Throughout April-June 2011, FDI inflows more than doubled to US$13.44 billion from US$5.77 billion in the first quarter of the last fiscal year. During the first six months of 2011, FDI increased by 57 percent to US$16.83 billion. If the movement carries on through the financial year, India could see an increase in FDI inflows after a two-year gap.
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