FDI inflow falls over 55% in March to $2 bn
The Financial Express, May 13, 2009, Page 2
Reeling under the impact of the global financial crisis, foreign direct investment (FDI) inflows into the country is estimated to have fallen by more than 55% to $2 billion in March 2009 from $4.44 billion in the same month last a year. This is the fifth time in six months that FDI inflows into India have seen a drop.
The figures for March 2009 took the total FDI inflows into the country for 2008-09 to around $27.38 billion, 11.75% more than $24.5 billion in 2007-08, but missed even the reduced target of $30 billion. In 2006-07, India had received only $15.5 billion worth FDI.
The government had initially set a FDI target of $35 billion for 2008-09 and later reduced it to $30 billion. However, it has set a similar target for 2009-10 too.
FDI inflows had dipped by 73% in February 2009 to $1.49 billion from $ 5.67 billion a year ago.
On FDI inflows for 2009-10, Gopal Krishna, joint secretary in the department of industrial policy and promotion (the nodal department for FDI policy), had said last month “there will be some investment (in 2009-10), which will be delayed but overall outlook is positive and optimistic.”
Gopal Krishna said if reinvested earnings were also taken into account, FDI for 2008-09 would be $37.5 billion. FDI for 2009-10, including reinvested earnings would be over $40 billion, he said.
After maintaining a monthly average of $2.8 billion till September in the 2008-09 financial year, FDI inflows fell by 26% in October to $1.49 billion. It slipped by a similar 26% in November to just $1 billion, and by 13% in December to $1.36 billion.
However, it turned upwards in January, rising 55% at $2.74 billion, against $1.77 billion in January 2008.
India has attracted FDI inflows of around $88 billion from April 2000 to February 2009.
On FDI outlook for 2009-10, Jai Sinha, managing director, India, Booz&Co said “India’s GDP may not be growing at 9%. But even at 6%, it is higher than in many other countries. In absolute terms, I don’t think India will have the same FDI inflows in 2009-10 as it had in 2008-09.” “But in terms of how it is overall in comparison with the global FDI, it will be okay,” he added.
A recent survey on Foreign Direct Investment (FDI) in India by global consultants Booz & Company and Amcham, 52% of total respondents said India is an attractive FDI destination.
However, 60% of them were concerned about poor infrastructure, while 55% opined that lack of clarity in FDI guidelines trouble them while making investments. Other worries included red tape and shortage of skilled professionals.
The Financial Express, May 13, 2009, Page 2
Reeling under the impact of the global financial crisis, foreign direct investment (FDI) inflows into the country is estimated to have fallen by more than 55% to $2 billion in March 2009 from $4.44 billion in the same month last a year. This is the fifth time in six months that FDI inflows into India have seen a drop.
The figures for March 2009 took the total FDI inflows into the country for 2008-09 to around $27.38 billion, 11.75% more than $24.5 billion in 2007-08, but missed even the reduced target of $30 billion. In 2006-07, India had received only $15.5 billion worth FDI.
The government had initially set a FDI target of $35 billion for 2008-09 and later reduced it to $30 billion. However, it has set a similar target for 2009-10 too.
FDI inflows had dipped by 73% in February 2009 to $1.49 billion from $ 5.67 billion a year ago.
On FDI inflows for 2009-10, Gopal Krishna, joint secretary in the department of industrial policy and promotion (the nodal department for FDI policy), had said last month “there will be some investment (in 2009-10), which will be delayed but overall outlook is positive and optimistic.”
Gopal Krishna said if reinvested earnings were also taken into account, FDI for 2008-09 would be $37.5 billion. FDI for 2009-10, including reinvested earnings would be over $40 billion, he said.
After maintaining a monthly average of $2.8 billion till September in the 2008-09 financial year, FDI inflows fell by 26% in October to $1.49 billion. It slipped by a similar 26% in November to just $1 billion, and by 13% in December to $1.36 billion.
However, it turned upwards in January, rising 55% at $2.74 billion, against $1.77 billion in January 2008.
India has attracted FDI inflows of around $88 billion from April 2000 to February 2009.
On FDI outlook for 2009-10, Jai Sinha, managing director, India, Booz&Co said “India’s GDP may not be growing at 9%. But even at 6%, it is higher than in many other countries. In absolute terms, I don’t think India will have the same FDI inflows in 2009-10 as it had in 2008-09.” “But in terms of how it is overall in comparison with the global FDI, it will be okay,” he added.
A recent survey on Foreign Direct Investment (FDI) in India by global consultants Booz & Company and Amcham, 52% of total respondents said India is an attractive FDI destination.
However, 60% of them were concerned about poor infrastructure, while 55% opined that lack of clarity in FDI guidelines trouble them while making investments. Other worries included red tape and shortage of skilled professionals.
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