FDI in India slips by over 78% in June

NEW DELHI: Foreign direct investment (FDI) in India slipped by more than 78% during June, which is the third straight monthly decline, to $1.24 billion as compared to $5.65 billion in the year-ago period, displaying the effect of slowing global economy.

The contraction in foreign inflows to global and local economic problems and analysts feel that Cenrre needs to push big-ticket reforms to revive the global investors confidence.

FICCI Secretary General Rajiv Kumar said, “The numbers are bad. Now the government should immediately take decisions on issues like allowing FDI in multi-brand retail and permitting foreign airlines to buy stake in domestic carriers. These measures would help in attracting more FDI.”

The fall in FDI has come at a time when India's economic growth declined to nine-year low of 6.5% during FY12. The jump in the January-March quarter has been just 5.3%.

In the April-June period of 2012, FDI in India declined by 67% year-on-year to $4.42 billion. Foreign inflows in April and May slipped to $1.85 billion and $1.32 billion as against $3.12 billion and $4.66 billion, respectively, in the year ago period.