FDI inflows to India plunge 34 % to $22.7 bn in 2012

Foreign direct investment (FDI) equity inflows to India plunged 34 per cent to $22.7 billion in the calendar year 2012, from $34.6 billion last year, amid continuing global uncertainties weighed down by the eurozone debt crisis and a global economic slowdown, according to latest data released by the department of industrial policy and promotion.

In rupee terms, the slump was less severe with a 24-per cent drop at 121,600 crore in 2012 compared with 160,000 crore in 2011, due to a stronger rupee against the US dollar a year ago.

"The dip in foreign direct investment inflows is mainly due to uncertainties in the global economy," a department official said.

For the financial year 2012-13, the foreign inflows were down 42 per cent at $17 billion from $29.3 billion for the April-December period a year before. Total FDI inflows including equity, re-invested earnings, and other capital for the period were $27.2 billion.

FDI investment in India had peaked at $46.6 billion in 2011.

The investment hit a maximum of $4.7 billion in September, while it ebbed to around $1.1 billion in November and December.