$30 bn FDI expected in '09-10

Global investors are expected to remain positive on India and bring $30 billion foreign direct investment into the world's second-fastest growing economy in 2009-10 even when the world economy is facing a severe credit squeeze.

India is estimated to have received foreign direct investment of $27.5 billion in 2008-09, up from $24.57 billion in the previous year.

"The overall outlook (for 2009-10) remains positive," joint secretary in the department of Industrial Policy and Promotion Gopal Krishna told reporters on the sidelines of a function organised by Booz & Company and AMCHAM on Friday.

However, inflows in March 2009 declined to $2.5 billion from $4.44 billion in the same month last year.

Though the cumulative increase for 2008-09 is small, it is considered a positive development, given the fact that the global financial crisis is the worst.

Gopal Krishna said if reinvestment by foreign corporations is taken into account, FDI for 2008-09 was $37.5 billion. This is expected to go up to $40 billion in the current fiscal, he said.