India is fast catching up with China in the flow of foreign direct investment (FDI) as capital inflows through this route has crossed $10 billion in the first quarter of this fiscal. FDI in the first quarter of the financial year 2009 has far exceeded the total FDI flows received by the domestic economy in 2005-06, Reserve Bank of India’s data said.
The total FDI inflows into the country in the April-June period amounted to $10.073 billion, nearly one billion more than the total FDI inflows–$8.961 billion– in the 2005-06 period, RBI said in its August report.
The FDI flow into India was less than $10 billion annually until 2005-06. It shot up to $22 billion in 2006-07 and $32 billion in 2007-08. China has averaged $ 50 billion annually in the past decade. If the first quarter trend continues, India could cross this fiscal $40 billion mark in FDI annual inflow for the first time. FDI flows, during April-June, has doubled when compared to the same quarter of financial year 2008, $5 billion.
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