FDI shoots up 111% at $4.66 bn in May

Foreign direct investment inflows saw a whopping 111 per cent increase in May at $4.66 billion, the second highest monthly inflows in 11 years, marking revival of investor confidence in the Indian economy.

In May 2010 the foreign direct investment was $2.21 billion.

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For the April-May period of the current fiscal, the FDI went up by a huge 77 per cent to $7.78 billion from $4.39 billion in the corresponding period last year.

In the previous fiscal, the equity inflows through FDI had dipped 25 per cent amid uneven global recovery from the recession of 2008.

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"The recent trend of dip in FDI inflows appears to have been reversed in the current financial year. . . Recent investments (announcements) like $ 7 billion BP-Reliance tie-up are indicative of a positive trend," a statement from the Commerce and Industry Ministry said on Monday.

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It said the government has taken various measures to boost confidence of global investors and streamlined the procedures.

"The approvals given to Posco and to the Cairn-Vedanta acquisition are also likely to substantially increase FDI this year. . . " the statement said.