FDI declines by over 65 in Apr-Jun

According to latest data of the Reserve Bank of India RBI,the FDI inflow in the country was USD 1.32 billion in June as against USD 5.73 billion in the same month last year.

The data revealed that the net FDI 8212; difference between FDI inflow and outflow 8212; plunged 58 per cent to USD 3.83 billion in the first three months of the fiscal. The net FDI inflow was USD 9.04 billion in the same period of 2011-12.

The inflows have been on decline since the beginning of the fiscal amid global economic slowdown and some foreign investors expressing concerns over India8217;s 8220;policy inaction8221;.

Director of Indian Institute of Foreign Trade IIFT K T Chacko said 8220;may be it decline in FDI is because of the general lack in the overall investment climate and lack of stability in the policy8221;.

He said the amendments to tax laws with retrospective effect,too,could have some impact on the foreign fund inflows.

Industry bodies have been demanding from the government to go ahead with economic reforms like opening the multi-brand retail sector to foreign investors to boost the investment climate in the country.

Decline in foreign investments puts pressure on the country8217;s balance of payments BoP and could also impact the rupee.