Inflows for the first quarter of financial year 2007-08 went up by 185 per cent to $4.9 billion from $1.7 billion received during April-June last year. During January-June 2007, inflows rose 216 per cent compared to $3.6 billion in the corresponding period last year.
"This is a huge jump. The most important thing is that these are largely first-mile investments and are obviously going to grow in geometrical proportions," Commerce and Industry Minister Kamal Nath told reporters on Friday.
India remains a favourite destination of FDI 'despite what is going on in the stock market', he said.
Domestic bourses have fallen in
the past few days in line with the global trend as the US housing loan crisis spread.
Vodafone, the world's biggest mobile operator, topped the list of foreign investors bringing in $801 million. It was followed by Matsushita Electric Works of Japan with $342 million.The British firm acquired controlling stake in the operator Hutch-Essar early this year, while the Japanese company bought Anchor Electricals. GA Global Investments Ltd was the third largest investor.
Nath said the country had received $15.7 billion FDI in 2006-07 as compared to $5.5 billion a year ago. "If reinvested earnings and other capital inflows are included, total inflows in 2006-07 add up to $19.5 billion compared to $7.7 billion in 2005-06," he said.
Nath has in the past said that India could get an estimated $25-30 billion of FDI in 2007-08.
