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June witnesses second-highest monthly FDI

June records second highest monthly FDI

June recorded the second highest foreign direct investment (FDI), received on a monthly basis in the last 11 years, at USD 5.6 billion, according to an official data released recently.

"A record second-highest monthly foreign direct investment equity inflow (during the last 11 financial years, starting 2000-2001), of USD 5.656 billion, has been received during the month of June 2011," according to a statement from the commerce and industry ministry.

This is nearly 310 percent increase over the FDI inflows of USD 1.38 billion received in June 2010.

FDI inflows had slowed down by 25 percent in the January-March quarter to USD 18.4 billion which the government attributed to economic slowdown in the US and Europe.

India Inc, however, blamed bureaucratic red-tapism involving business proposals and complex labour and tax laws that forced foreign companies to stay away from one of the fastest growing emerging economies in the world.

For the first quarter of the current financial year, FDI inflows have risen almost 133 percent, to USD 13.44 billion, over the like period of 2010-11.

During the six months of 2011 ending June, FDI inflows were recorded at USD 16.83 billion, an increase of 57 percent compared to the first six months of 2010.

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