Decline in Inflow of Foreign Capital
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)
| Period | Net Capital Flows
|
Net FDI to India |
| 2009-10 | 50.4 | 18.0 |
| 2010-11 | 63.7 | 11.8 |
| 2011-12 | 67.8 | 22.1 |
| 2012-13 (Apr.-Sep) | 40.0 | 12.8 |
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.
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