FDI shoots up 111% at $4.66 bn in May

FDI shoots up 111% at $4.66 bn in May

New Delhi: FDI inflows saw a whopping 111% increase in May at $4.66 billion, the second highest monthly inflows in 11 years, marking revival of investor confidence in the Indian economy.

In May 2010 the foreign direct investment (FDI) was $2.21 billion.

For the April-May period of the current fiscal, the FDI went up by a huge 77% to $7.78 billion from $4.39 billion in the corresponding period last year.

In the previous fiscal, the equity inflows through FDI had dipped 25% amid uneven global recovery from the recession of 2008.

“The recent trend of dip in FDI inflows appears to have been reversed in the current financial year... Recent investments (announcements) like $7 billion BP-Reliance tie-up are indicative of a positive trend," a statement from the Commerce and Industry Ministry said on Monday.

It said the government has taken various measures to boost confidence of global investors and streamlined the procedures.

“The approvals given to Posco and to the Cairn-Vedanta acquisition are also likely to substantially increase FDI this year.." the statement said.