The Hindu Business Line : FDI inflow trebles in first half at $11.4 b

New Delhi, Aug. 17 Foreign direct investment (FDI) inflows into the country have more than trebled in the first six months of calendar year 2007 to $11.4 billion as compared to inflows of $3.6 billion received in same period last year, registering a growth of 218 per cent.

Big ticket investments from companies such as Vodafone, Matsushita Electric Works, EMAAR Holdings, helped propel FDI inflows in the first quarter of the current fiscal to $4.9 billion.

This reflected an over 185 per cent increase to the inflows of $1.7 billion recorded in April-June 2006.

“This is a huge jump. The most important thing is that these are largely first mile investments and they are only going to grow in geometric proportions”, Mr Kamal Nath, Union Commerce and Industry Minister, told reporters here on Friday.

He also said that the FDI inflows touched $15.7 billion in fiscal 2006-07, registering a growth of 185 per cent over the level of $5.5 billion recorded during 2005-06.

This is also the first time that FDI equity inflows into India have crossed $10-billion mark.

Favourite destination

Mr Kamal Nath maintained that India remained a favourite destination for FDI despite the current meltdown in the domestic stock markets. The Minister also indicated that the review of FDI policy in various sectors for streamlining of procedures and also opening up of sectors (does not include retail) would get completed by end September. Top inflows received in the first two months of fiscal 2007-08 include telecom major Vodafone’s (Mauritius) investment of $801 million , Matsushita Electric Works , Japan ($342 million), GA Global Investments Ltd ($258 million ) and EMAAR Holdings, Mauritius, investment of $204 million.