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FDI inflows up 93% in Jan-Feb at
Rs 34.96 bn

The continuing recession does not seem to be impacting foreign investor confidence with FDI inflows increasing by 93 per cent at Rs 34.96 billion during the first two months of 2001 compared to Rs 17.99 billion last year.

The foreign direct investment inflows accounted for 47 per cent of the total FDI approvals of Rs 51.23 billion granted by the government during the first two months of 2001.

FDI approvals during the period January-February 2001 also more than doubled over the Rs 29.06 billion approved in the corresponding period in 2000.

Of the total FDI approvals, almost 90 per cent was accounted for by the clearances given by the Foreign Investment Promotion Board which approved investments worth Rs 46.05 billion.

This trend was similar to that of last year when Rs 27.80 billion of the total FDI approvals was accounted for by the FIBP.

While the value of the FDI during the first two months of the calendar year increased, the number of FDI cases approved, in fact, came down marginally from 286 cases during January-February 2000 to 279 cases this year.

However, the number of global depository receipt approvals given during the first two months of the calendar year declined from six last year to one in 2001.

The number of cases for foreign investment declined from 286 last year to 279 during the first two months in 2001, while the number of foreign technology agreements increased from 37 in 2000 to 70 cases in January-February 2001.

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