July FDI jumps 55% yoy

For the first time in more than one year, foreign direct investment (FDI) crossed the US$3bn mark on a monthly basis. Total FDI inflows amounted to US$3.48bn in July, up 55% from US$2.25bn a year ago. Cumulative inflows from April-July 2009-10, despite being lower at US$10.5bn compared with US$12.3bn in the year-ago period, were marginally higher than inflows through the portfolio route, which amounted to US$10.35bn over the same period. India in a way did better than China, which witnessed a dip in FDI inflows. In July, China saw FDI plunge 35.7% to US$5.36bn, though in absolute terms, it annually receives far higher FDI than India. The government has scaled down its FDI target for FY10 by US$5bn to US$30bn.

Separately, the Union Government, along with industry body Federation of Indian Chambers of Commerce & Industry (FICCI) is to set up a not-for-profit company dubbed Invest India to facilitate the flow of foreign investment into the country. Invest India will be the first point for FDI into the country, Commerce & Industry Minister Anand Sharma said.