FDI inflows more than doubled to $25.8 billion in H1-FY’12: Mukherjee

Foreign direct investments into the country swelled to $25.8 billon during the first half of the current financial year (April-September 2011-12), compared with $11 billion in the corresponding period a year ago, finance minister Pranab Mukherjee said today.

Yet, he said, India needed the investments in retail space as it would have given some respite to the government, which is finding it difficult to raise enough resources for investment.

The global slowdown, however, has hurt the flow of funds to the country, he said, adding, India's exports have also been hurt.

Addressing members of Parliament belonging to the ruling Congress Party in the capital, Mukherjee said the government was forced to suspend plans to allow FDI in retail trade in order to avert ''premature elections''.

"I am sorry to those members who had supported FDI in retail and might be feeling let down. But if we had gone ahead it could have created a crisis for the government," he said.

But, he said, the government had no alternative. As the majority partner in the ruling alliance, Mukherjee said, the Congress has the responsibility to take allies on board.