Mumbai: Signs of India`s economic recovery appears to have raised the confidence among foreign investors with the flow of foreign investment surging five times in the April-June quarter.
As against a flow of nearly USD three billion in the preceding quarter of Jan-March, the direct and portfolio investments flow together rose sharply to USD 15 billion during April-June this year, data released by RBI revealed.
Of the total investment flows during the quarter,
portfolio investments accounted for USD 8.270 billion, while
direct inflows contributed USD 7.016 billion to the total
flows, Reserve Bank data showed.
In the three months ended March, 2009, total inflows
into the domestic market was a mere USD 3.589 billion.
Foreign fund inflows had sharply declined in FY09
after the global financial turmoil triggered panic among
foreign institutional investors, prompting them to pull out
money from emerging markets.
While the country received a total investment of USD
61.633 billion in 2007-08, for the full financial year ended
March 31, 2009, total investments dropped to USD 21.313
Of the total fund flows that reached the country in
2008-09, direct investment contributed USD 35.168 billion
while portfolio investments posted a negative flow of USD