RBI Blames Jairam’s Policies for FDI Dip.

While India hardsells itself at Davos as a favoured destination among emerging economies like China, Brazil, Mexico and Indonesia among others, Environment Minister Jairam Ramesh’s “environment sensitive policies” seem to be driving foreign direct investments (FDI) away from the country.

At least this is what the Reserve Bank of India suggests — in its quarterly review of economy released on Monday -as one of the key factors affecting “investors’ sentiment.”

The RBI records an “almost 36 per cent” dip in inward FDI during the first half of the current fiscal (April-September 2010). The RBI, in its report, points out that inward FDI during this period stood at only about $12.6 billion as against $19.8 billion inward flow witnessed during the same period last fiscal.

That it was not a global phenomenon is borne out of the fact that FDI inflow into other emerging economies during this period was up in the range of 6-53 per cent.

Source : indianexpress.com