FDI records 45% growth despite global meltdown

Notwithstanding the global financial crisis, India recorded a 45 per cent growth in Foreign Direct Investment (FDI) by receiving $23.3 billion between April and December 2008 over the same period in the previous year.

Even during the fiscal 2007-08, India's FDI was a record $32.4 billion, Finance Minister Pranab Mukherjee said while presenting the Interim Budget in the Lok Sabha.

Seeking to present a rosy picture of the country's financial health despite the global meltdown which began in 2007 impacting most emerging market economies, he said 7.1 per cent rate of GDP growth in the current year makes India the second fastest growing economy of the world.

"The fallout of global slowdown on Indian economy was countered with fiscal stimulus packages announced in December 2008 and January 2009 providing tax relief to boost demand and increasing expenditure on public projects," he said.

To keep the economy going, Mukherjee said, the government has accorded approval to 37 infrastructure projects worth Rs 70,000 crore from August 2008 to January 2009.

The government also gave in-principle or final approval to 54 central sector infrastructure projects with a project cost of Rs 67,700 crore and 23 projects amounting to Rs 27,900 crore were approved for viability gap funding in 2008-09.