Friday, June 27, 2008

FDI rises by 127 per cent in April 2008

New Delhi: The high inflation in India has not affected foreign investors' enthusiasm about its economic growth. Foreign Direct Investment (FDI) in April saw a massive 127 per cent rise over the period last year, touching US$ 3.74 billion.

FDI in 2007–08 was US$ 25 billions and the target for the current financial year has been set at US$ 35 billion.

"I want to dispel fears of any economic slowdown and investment drying up," said Commerce and Industry Minister Kamal Nath on June 26, 2008. He further added that even though the rising interest rate was affecting the cost of production, the industry would sustain a growth momentum of 8–9 per cent in 2008–09.

In April, 2007–08 FDI was US$ 1.64 billions— less than half the FDI in April this fiscal.

Commerce and Industry Minister Kamal Nath was equally optimistic about exports which have grown by 31.5 per cent in April touching US$ 14.4 billions from US$ 10.94 billions in the first month of the last fiscal.

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