FDI inflows up by 185 percent

NEW DELHI: Foreign Direct Investment (FDI) inflows have registered a growth of over 185 percent during the first quarter of current fiscal. It reflects the confidence foreign investors continue to repose in Indian growth story.

FDI inflows during April-June 2007 have crossed $4.9 billion as against $1.7 billion inflows registered in the corresponding period in 2006-07.

As per data released by Commerce and Industry Minister Kamal Nath, the FDI inflows touched a whopping $15.7 billion during last fiscal as against $5.5 billion registered in 2005-06. This is the first time, the FDI inflows have crossed the $10 billion in a given financial year.

However these figures do not take into account the outward flow of investments made by Indian companies in destinations abroad. The data does not factor the portfolio or mutual funds investments made by companies in markets abroad with in the limits set by RBI and Securities Exchange Board of India (Sebi).

Meanwhile, a Commerce Ministry news release has stated that the total investments made by foreign investors would touch $19.5 billion during 2006-07 if the re-invested earnings and other capital inflows are accounted for.