The country had attracted FDI worth USD 3.12 billion in April, 2011. Attributing the decline to global and domestic economic problems, the experts have suggested that the government should push some big-ticket reform initiatives to restore confidence of global investors.
“The government should take important and key reforms immediately like allowing FDI in multi-brand retail and permitting foreign airlines to buy stake in domestic carriers. These moves would help in increasing FDI inflows in the country,” Ficci Secretary General Rajiv Kumar said. The decline in FDI comes at a time when India’s economic growth slipped to 9-year low of 6.5 per cent in 2011-12. The growth in the January-March quarter was merely 5.3 per cent. More recently, Standard and Poor’s and Fitch have lowered India’s credit outlook to negative from stable citing reasons such as high inflation and inadequate reforms.
However, in March, the country had received the highest ever monthly inflows of USD 8.1 billion. Earlier, highest FDI of USD 5.65 billion was received in June last year.
Cumulative FDI inflows for the fiscal 2011-12 amounted to USD 36.50 billion.
The sectors which received large FDI inflows in April include services (USD 449 million), pharmaceuticals (USD 359 million), construction (USD 120 million) and power (USD 68 million), a senior official in the Department of Industrial Policy and Promotion (DIPP) told PTI.
- Handicraft exports up 11 pc to USD 227 million in April
- India-Pak trade declines 30% to $1.56 bn in Apr-Jan FY’12
- Key infra sectors fail to meet output targets in April-July
- India’s exports up 44.2 pc in August, imports grow by 41.8 pc
- India’s exports up 36.3 pc in September, imports rise 17.2 pc
- Railways post growth of 3.52% in freight traffic in April
- India’s forex reserves dip by $4.67 billion
- Exports jump 81.7 pc to USD 29 bn in July
- Maruti Suzuki sales up 3 pc in April
- Industrial production growth slows to 0.1 pc in April