India may achieve highest FDI in present fiscal year

NEW DELHI: India is likely to bag the highest foreign direct investment (FDI) in 2011-12.

Mr Kaushik Basu, Chief Economic Adviser at the Ministry of Finance, said, “This year the FDI is going to see a very big rebound and go up to a very comfortable level. And it should go up where we were (at the) record high.”

In the fiscal year 2010-11, India had received FDI worth $19.4 billion, witnessing a 25% fall compared to the previous fiscal year 2009-10. During 2000-2001 and 2010-11, India has bagged highest FDI of $27.32 billion in 2008-09.

Mr Basu has stated that said foreign institutional investments (FIIs) are difficult to estimate.

In the recently released Economic Outlook for 2011-12, the Prime Minister’s Economic Advisory Council PMEAC has stated that the net capital flows this fiscal is expected to surge in 2011-12 although it is estimated that FIIs may decline.