FDI on new record high

Discussion in 'Economy & Infrastructure' started by Koovie, May 12, 2012.

  1. Koovie

    Koovie Regular Member

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    As stock valuations dipped, overseas investors were eager to pick up stakes in Indian companies last fiscal. London-listed Vedanta acquired a controlling stake in Cairn India for $9 billion. British major BP paid $7.2 billion for a stake in oil and gas fields operated by Reliance Industries and Vodafone Group purchased partner Essar's shares in their telecom joint venture.

    FDI inflows were less than $10 billion prior to 2005-06. They improved thereafter and the country received $34.8 billion in 2010-11.

    Taking a detour

    Mauritius chipped in with the maximum funds in 2011-12, putting in a third of the FDI. But its share declined from 36 per cent in 2010-11. In contrast, FDI from Singapore shot up almost three-fold and accounted for 17.8 per cent of all FDI inflows during the period. The fear that the tax authorities might take a closer look at funds flowing from Mauritius could have resulted in incremental flows being routed through Singapore.UK investments more than trebled and fund flows from Japan shot up by 83.6 per cent. FDI from the US declined by 16.5 per cent.


    Which sectors?

    In terms of sectors, services attracted the maximum investment this fiscal as per Department of Industrial Policy and Promotion (DIPP) data (April-February). However, in terms of growth, it was drugs and pharmaceuticals that saw the maximum jump, with an over 15-fold increase. In contrast, the automobile and housing and real estate sectors saw FDI decline. Investment in the petroleum sector jumped significantly too.

    Portfolio flows lag

    In contrast to the upbeat FDI sentiment, foreign institutional investor (FII) flows fell by around 43 per cent to $16.8 billion vis-à-vis the year-ago period. Investment in Indian Global Depository Receipts (GDRs) and American Depository Receipts (ADRs) also fell sharply to $597 million.
    FDI in 2011-12 rises 34%, a new high
     
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  3. Sunder singh

    Sunder singh Regular Member

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    wat is percent of india in global fdi
     
  4. ejazr

    ejazr Stars and Ambassadors Stars and Ambassadors

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    [​IMG]

    Comparison with previous years
     
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  5. ejazr

    ejazr Stars and Ambassadors Stars and Ambassadors

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    Well it would probably be around 3%. Although Indians have also been in top 10 investors in the global market putting FDI in foreign countries
     
  6. Koovie

    Koovie Regular Member

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    at least one good news in our economy.....
     
  7. cir

    cir Senior Member Senior Member

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    As stock valuations dipped, overseas investors were eager to pick up stakes in Indian companies last fiscal. London-listed Vedanta acquired a controlling stake in Cairn India for $9 billion. British major BP paid $7.2 billion for a stake in oil and gas fields operated by Reliance Industries and Vodafone Group purchased partner Essar's shares in their telecom joint venture.

    This is defined as FDI?Not portfolio investment?

    India is indeed a magic land where even FDI acquires a different meaning. :rofl:
     
  8. ejazr

    ejazr Stars and Ambassadors Stars and Ambassadors

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    FDI refers to investment in companies not portfolios and stocks

    That is usually comes via teh FII route


    portfolio investments is hot money and can come and go quickly. On the other hand FDI is solid investment into a company locally within India that is going to stay here in the long term

    Ideally you would prefer to have more FDI than hotflow money like portfolio inflows
     
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  9. trackwhack

    trackwhack Tihar Jail Banned

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    chief, you're trying to explain to that dolt?
     
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  10. ejazr

    ejazr Stars and Ambassadors Stars and Ambassadors

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    ^^^^I don't know his history

    I just give people the benefit of the doubt
     
  11. cir

    cir Senior Member Senior Member

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    In simple words, FDI creates NEW physical assets on the ground。 That means acquiring lands、 building NEW plants、purchasing NEW equipments and creating NEW job opportunities。

    Maybe India is so short of FDI that it categorizes financial transactions as FDIs, which surely makes the figures look better.:rofl:
     
    Last edited: May 13, 2012
  12. nrj

    nrj Stars and Ambassadors Stars and Ambassadors

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    In China, FDI continued to decline for 6th consecutive month in April. Chinis should be worried about that. Thank the Japanese who are still giving you FDI numbers despite others moving away. Not to mention Chinese industrial output is at record slowest since 2009.
     
  13. Rahul92

    Rahul92 Senior Member Senior Member

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    Wonder sensex still did not cross 20000
     
  14. agentperry

    agentperry Senior Member Senior Member

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    the company buyouts mentioned created new assets. in case of cairn India the vedanta group invested heavily to start rajasthan oil extraction unit.
     

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