RBI report informs that FDI investments were lower than potential in 2010-2011

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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