FDI may increase to $36 bn in 2013-14: PMEAC
New Delhi: The PM's Economic Advisory panel expects foreign direct investment (FDI) in India to increase to USD 36 billion this fiscal on the back of supportive policies.
"For 2013-14, we are projecting that with supportive policies it is possible to generate higher levels of inbound FDI flows of the order of USD 36 billion, comparable to four of the previous six years," the Prime Minister's Economic Advisory Council (PMEAC) report said.
The outbound FDI is also expected to increase, resulting in net FDI inflow of USD 24 billion, it said.
From 2007-08 to 2009-10, the annual foreign inflows ranged from USD 33?35 billion, while outbound FDI was USD 14?19 billion.
During the first nine months of the 2012-13 fiscal, India received foreign inflows worth USD 21 billion, lower than the USD 29 billion in the corresponding period of 2011-12.
The outbound FDI was marginally smaller and the net inflow of USD 15 billion in the first nine months of 2012-13 was significantly smaller than the USD 21 billion in the same period of the previous year.
PMEAC has estimated that for the entire 2012-13, FDI into the country may reach at USD 26 billion, while outbound FDI may touch USD 8 billion.
On portfolio investment, it said that in 2012-13, inflows were weak in the first quarter, but picked up in the second and third quarters, totalling more than USD 16 billion in the first nine months.
For the year as whole, portfolio inflows are estimated to be close to USD 24 billion, it added.
"In 2013-14, we projected a level of inflow somewhat lower than that of the previous year. Maintaining this level will be mostly dependant on domestic policy stance and growth conditions. Abrupt weakening of international risk appetite can pose a problem, but at the moment crisis conditions are not expected," it said.