India bullish on FDI inflows
26 Nov 2008
Not discouraged by the global financial crisis and the worldwide economic slowdown, India maintains an optimistic belief about future Foreign Direct Investment, Commerce and Industry Secretary Ajay Shankar said.
Mr. Shankar told reporters that FDI inflows till September-end were strong and that he expected FDI inflows to remain strong as companies like General Motors, Volkswagen and Toyota continue to execute their ongoing projects.
There is no indication of a slowdown in FDI inflows,. he added.
He said a decision on relaxation and systematic review of FDI policy, which is under consultation between ministries, is expected soon.
The Department of Industrial Policy and Promotion (DIPP) has thought carefully about excluding the foreign institutional investors' stake in companies from the overall FDI ceiling, an issue which will be resolved by an empowered Group of Ministers.
Despite the worldwide economic slowdown, India received $17.21 billion in FDI between April-September this financial year, a strong increase of 137 per cent from $7.25 billion in the first half of the previous fiscal.
Between April-August, manufacturing has drawn in an FDI of five billion dollars, an increase of 41 per cent over inflows in the corresponding period of last year.
Authorities in India are actively looking at both fiscal and monetary measures to energise demand in the economy to maintain a high growth rate, said Shankar, adding that relaxation of foreign investment rules is also being looked at carefully.
