Foreign Direct Investment (FDI) into India went up by 56% to $2.

53 billion in November 2011
Current Affairs Category: 2012 Current Affairs, January 2012 Current Affairs, Economy

Foreign direct investment (FDI) into India went up by 56% to $2.53 billion in November 2011, indicating an improvement in investor sentiment. In September and October 2011, the inflows were down by 16.5% and 50% year-on-year respectively. During the April-November period, the FDI was up by 62.81% from $14.02 billion in 2010.

Cumulative flows for the April-November period stood at of $22.83 billion, surpassing $19.43 billion achieved in the full financial year 2010-11.

The country had received $1.62 billion overseas investment in November 2010. In 2010-11, FDI into equity had dipped 25% to $19.43 billion, from $25.6 billion in 2009-10. In 2008-09, FDI stood at $27.3 billion.

Analysts opined that if the upward trend in FDI continued, the FDI in the current financial year 2011-12 will cross $30 billion. The develoment is to have a positive effect on rupee in the foreign exchange market. The selling pressures in the stock market from the foreign institutional investors and rising trade deficit had led the rupee to decline by about 15% since August 2011.

Sectors which attracted the maximum funds include services, construction activities, power,computers and hardware, telecom and housing and real estate. Mauritius, Singapore, the US, the UK, the Netherlands, Japan, Germany and the UAE are major sources of FDI for India.

The Moody's upgraded India's short-term foreign currency rating from speculative to investment grade.

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