FDI Inflows Grow 57%, But Trail 2008 High.

FOREIGN Direct Investment (FDI) inflows into India grew by 57 per cent at $16.83 billion in the first six months of 2011 from $10.74 billion between January-June last year, while there was a robust growth of 310 per cent in FDI inflows in June itself. However, the inflows in the first six months are still lower than the peak levels of 2008 when India received FDI worth $ 21.9 billion between JanuaryJune 2008.

“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 commerce ministry said after FDI numbers were released on Monday.

The better news is that government policy advisors and economists feel that despite the global uncertainty, India would continue to be an attractive destination in the long run.

“India will continue to be an attractive investment destination in the long run because we know that revenue streams will come from big markets like India and China, as they are yet to realise their full potential, unlike saturated markets of US and EU. However, there may be some fluctuations in the near term as investors would need money to repay debt in US,“ Arun Maira, member of Planning Commission said.

Source : mydigitalfc.com