FDI inflows add cheer to diwali mood, up over 40 pc in Aug

NEW DELHI: Along with a double digit growth in the industrial production, foreign direct investment in the country rose by an impressive 40.51 per cent in August, adding cheers to Diwali mood.

The country received foreign direct investment of $3.26 billion in August this fiscal against $2.32 billion a year ago even as the global economy is yet to show concrete recovery.

However, the inflows in August were less than the July level of $3.47 billion, as per the RBI data. The inflows in July had also risen by 56 per cent on annualised basis.

The country had attracted $100 billion of FDI in equity since 2000 up to July this year.

Experts see signs of recovery as also global investors' confidence in the Indian economy.

"Foreign investors are confident about the India growth story," Axis Bank Economist Saugata Bhattacharya said.

HDFC Bank economist Jyotinder Kaur said that as the recovery become apparent, FDI inflows are likely to rise in the coming months.

"The inflows would rise because foreign investors see India as a good long-term destination," she said.

Factory output grew by 10.4 per cent in August on the back of robust growth in mining and manufacturing sectors, the official data released yesterday said.