FDI inflow growth up 40% in Aug

Demonstrating growing confidence in the Indian economy, foreign investors stepped up capital infusion into the country by over 40 per cent in August, adding to the cheers this Diwali set rolling by the robust industrial production.

The country received foreign direct investment (FDI) of $3.26 billion in August, $2.32 billion a year ago, although concrete signs of recovery are yet to be seen in the global economy.

However, inflows in August were less than the July level of $3.47 billion, according to RBI data. The inflows in July had also risen by 56 per cent on an annualised basis.

The country has attracted $100 billion of FDI in equity from the year 2000 till July this year.

Experts see signs of recovery, as also growing confidence of global investors, in the Indian economy. “Foreign investors are confident about the India growth story,” Axis Bank Economist Saugata Bhattacharya said.

HDFC Bank economist Jyotinder Kaur said, as the recovery became apparent, FDI inflows were likely to rise in the coming months.

“The inflows would rise because foreign investors see India as a good long-term destination,” she said.

Factory output grew 10.4 per cent in August on the back of robust growth in the mining and manufacturing sectors, the official data said.