India's FDI rises 55 per cent in January at $2.74 billion: report

Foreign direct investment (FDI) into India ended its downward trend, rising 55 per cent in January against a decline in the last quarter of 2008, reports quoting industry ministry sources said.

FDI inflows in January 2009 stood at $2.74 billion, against $1.77 billion in January 2008, according to data available on the ministry's website.

Foreign investment flows into the country stood at $23.9 billion against the target of $35 billion for the whole of fiscal 2008-09.

FDI flows into India fell in October-December 2008 from the corresponding months in the earlier year, as the global finacial crisis dental capital flows, the data showed.

The United Nations expects further declines from a 21 per cent drop in FDI flows from the previous year, hitting developing countries like India.

India is expected to close the current fiscal ending 31 March with $28 billion of FDI against inflows of $24.5 billion in the previous fiscal.

In the April-September of the current financial, foreign direct investment was up 137 per cent from a year earlier at $17.2 billion. In the first 10 months of the financial year, it was up 66 per cent at $23.94 billion.

Foreign companies are expected to reinvest about $8-10 billion of their earnings in the country.

"If reinvested earnings are included, the total FDI this financial year would be around $38 billion, up from $34.3 billion in the previous fiscal year," the report said.