Reserve Bank of India (RBI) has informed that according to a research study titled ‘Foreign Direct Investment Flows to India’ undertaken by RBI, Foreigh Direct Investment (FDI) flow into India were lower than the potential level in 2010-11.

However, net capital inflow, including FDI, picked up to US$ 67.8 billion in 2011-12, i.e. 6.3 per cent higher than the preceding year. During 2012-13, in April-September 2012, net capital inflow amounted to US$ 40 billion. The details given by RBI are indicated in the following table:

Table: Net Capital flows to India

   (US$ billion)

Source: RBI

Under the liberalized economic environment, investment decisions including inflow of foreign capital are based on the macro-economic policy framework, investment climate in the host country, investment policies of the trans-national corporation concerned and other commercial considerations.  

This information was given by the Minister of State of Commerce & Industry, Dr. S. Jagathrakshakan in a written reply in Rajya Sabha today.

 

DS/RK

(Release ID :93105)

Foreign capital inflows: net capital strengthened while FDI lagged potential, linked to policy and investment climate. A monetary authority study reported that FDI inflows were below potential in 2010-11 while net capital inflows strengthened in 2011-12, with provisional inflows continuing in April-September 2012. The report quantifies net capital flows and net FDI across the reported periods and links variation in foreign capital to the macroeconomic policy framework, the host country investment climate, transnational corporation investment strategies and other commercial considerations.