India’s FDI inflows up 12% at $2 billion in Feb

The highest FDI came in services, followed by automobiles, pharma and construction during Apr-Feb 2013-14 

 

 for the April-February period of last fiscal, FDI inflows dipped 0.6% to $20.76 billion, from $20.89 billion during the first 11 months of 2012-13. Photo: Hemant Mishra/Mint

New Delhi: Foreign direct investment (FDI) into India grew for the second consecutive month in February this year to $2.01 billion, up 12.29%. In February 2013, the FDI was at $1.79 billion according to the data by the department of industrial policy and promotion (DIPP).

However, for the April-February period of last fiscal, FDI inflows dipped 0.6% to $20.76 billion, from $20.89 billion during the first 11 months of 2012-13.

The highest FDI came in services ($2.18 billion), followed by automobiles ($1.28 billion), pharmaceuticals ($1.27 billion) and construction development ($1.05 billion) in the 11 months of 2013-14.

Mauritius led the inflows into India with $4.48 billion, followed by Singapore ($3.91 billion), the UK ($3.21 billion) and the Netherlands ($2.20 billion).

In January 2014, FDI had increased 1.5% at $2.18 billion.

The country needs foreign investment to help regain its growth momentum. India’s economic growth slowed to a decade’s low of 4.5% in 2012-13. India is estimated to require about $1 trillion between 2012-13 and 2016-17, the 12th Five-Year Plan period, to fund infrastructure projects. A decline in FDI would hurt the rupee, which depreciated to a record low of 68.85 against the US dollar on 28 August last year. Since then the local currency has rebounded and is hovering at 61 per dollar.

 

NITESH KUMAR SINGH

PGDM 2ND 

SOURCE- MINT LIVE NEWS