FII investment doubles since Dec 2008: RBI

The foreign direct investment (FDI) into India has grown gradually since December 2008, while overseas fund flow in the capital market have nearly doubled in the two-year period, according to a Reserve Bank of India (RBI) data.

An analysis of the RBI data shows that since December 2008, the FDI investment have grown from $125.2 billion to $198 billion in December 2010.

Comparatively, portfolio investment, both in equity and debt securities, jumped from $91.6 billion to $171.7 billion in the aforesaid period.

Experts said foreign investors are finding Indian securities market well priced and are preferring to put in money even as long term overseas fund in the form of FDIs are investing gradually.

Growing from December 2008, FDI in India at the end of June 2009 stood at $145 billion, while increasing to $167 billion at the end of December 2009. It further grew to $178.3 billion in June 2010 and to $198 billion till December 2010.

In sharp contrast, portfolio investment increased to $95.9 billion at the end of June 2009 and jumped to $117.2 at the end of December 2009. This was again followed by a sharp surge to $135 billion in June 2010 before touching the $172 billion mark by December 2010.

FIIs mainly invested in equities, with their investments rising from $69 billion to $138.2 billion, while their investments in debt securities grew by $10.8 billion to $33.4 billion in two years.

Meanwhile, the portfolio investments made by Indians in other countries grew from $0.6 billion to $1.1 billion, while the direct investments by them overseas rose from $63.3 billion to $92.4 billion during the period under review.