FDI in India rises 34 % to $46.8 billion in 2011-12
12 May 2012
Foreign direct investments (FDI) in India rose 34 per cent to a record $46.8 billion in 2011-12 helped mainly by overseas companies buying into Indian companies like the $9 billion acquisition Cairn's stake in Cairn India by London-listed Vedanta Resources, BP's $7.2 billion acquisition of a 30-per cent stake in Reliance Industries' offshore gas assets in the KG block and Vodafone's acquisition of Essar's stake in its Indian venture.
Overseas investors picked up undervalued Indian stocks amidst a drying up of investment opportunities in the West in the wake of the euro zone financial crisis.
India attracted FDI worth $8.1 billion in March 2012 alone, the highest ever in terms of monthly inflows, despite the so-called investor fears over retrospective changes in tax laws in this year's budget.
The official data, however, has not yet been released.
FDI flows into the country were a mere $1.07 billion in March 2011.
Tax haven Mauritius accounted for a third of the FDI flows into the country, though with a declining share compared with the 36 per cent in 2010-11.
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