FDI Inflows To India Nearly Double In First Four Months Of '06

Foreign direct investment hit $2.9 billion compared to $1.5 billion in 2005.

India's booming economy drew a record $2.9 billion in foreign direct investment in the first four months of the fiscal year, nearly double last year's amount, a report said Oct. 7.

"FDI inflows in April-July 2006-07 increased by 92% to $2.9 billion from $1.5 billion in the same period of the last fiscal year," Commerce Minister Kamal Nath said.

"India is set to receive $12 billion this year as against $8.3 billion in 2005-06," Nath said in New Delhi.

For July, FDI inflows increased by a record 259% to $1.16 billion compared with $324 million in the same month a year earlier, Nath said. This total did not include reinvested earnings.

Foreign investors have been lured by India's strong economic growth. The economy expanded by 8.9% in the first quarter to June after growing by 8.4% in the financial year ended March 31, 2006.

Nath said India had received $50.1 billion in FDI since 1991 when the country began liberalizing the economy. Of this, $16 billion has come since April 2004.

Copyright Agence France-Presse, 2006

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