INDIA has recorded a dip of 50 per cent to USD 1.16 billion in the month of
October. This is a second consecutive drop in the inflow of FDI reflecting the
effect of the economic slowdown. As compared to the $2.33 billion FDI that India
recorded in the month of September last year, India has not even made it to the
same amount in September and October this year.
Equity inflows through the FDI route in 2010-11, had dipped by 25 per
cent to $19.43 billion from $25.6 billion in 2009-10.however during the
April-October period FDI went up by 50.3 per cent to $ 20.8 billion in the year
ago period as inflows were robust in the initial months. The economic conditions
in the US and Europe have caused the grave decline in FDI rates in India.
Despite the clouds of uncertainties hovering over the global economic
conditions, there is hope that FDI may touch $35 billion in 2011-12.
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