India's net FDI inflows grew 50% in Q1 FY14 on reforms: PHDCCI

NEW DELHI: Driven by the government's recent reform measures, India's net foreign direct investment ( FDI) inflows recorded over 50 per cent growth during the April-July quarter of the current fiscal.

Net FDI inflows rose to USD 8.2 billion during the period April-July 2013 from USD 5.4 billion during the corresponding period of the previous year, according to a study by PHD Chamber of Commerce.

"Increase in net FDI inflows is attributed to the recent reforms undertaken by the Government enacted in the FDI policy regime where it opened up various sectors of the economy to foreign investors," President of PHD Chamber of Commerce & Industry Suman Jyoti Khaitan said.

The continuation of reforms process would help India to become a major hub for foreign investors, going forward, he added.

The assessment conducted by PHD Chamber also said that despite effects of global economic crisis, the country's foreign investments recorded a healthy growth in Post-Lehman crisis period (FY 2009-13) as the volumes of FDI and FII inflows rose sharply.

FDI inflows stood highest at around USD 198 billion in FY 2009-13 period as against about USD 77 billion in FY 2004-08, about USD 21 billion in FY 1999-03 and around USD 10 billion in FY 1994-98, the year-wise analysis found.