New Delhi: Foreign direct investment (FDI) flows into India in July were up 56% from the same month in 2008, although they were down about 15% for the first four months of the 2009-10 fiscal year that began in April.
FDI flows into India were $3.5 billion in July, up from $2.25 billion a year earlier, commerce and industry minister Anand Sharma said on Thursday. FDI inflows in April-July were $10.5 billion, down from $12.3 billion in 2008-09.
“There is credit crunch globally so I think that will get reflected in lower FDI this year overall,” said D.K. Joshi, principal economist with rating agency Crisil. “Having said that, India will remain a hot destination for FDI for a long time.”
FDI in India rose 11% to $27.31 billion in 2008-09, but the financial slowdown has hit FDI flows worldwide.
Sharma also said the government would set up “Invest India”, a non-profit company to encourage foreign investment in collaboration with industry and state governments.