Current Fiscal FDI may miss target by 10 Billion Dollars

The foreign direct investment to the country may miss the current fiscal target by as much as $10 billion in the backdrop of a global economic slowdown and the US financial crisis, CEOs said in a survey.

In a survey of CEOs by industry body Assocham, majority said India could optimally receive about $25-26 billion of FDIs in 2008-09 fiscal against the targeted volume of $35 billion.

Other factors that may hinder the investment flow includes, adverse sentiments in the stock market, bottlenecks on infrastructure, no initiatives on disinvestments, rising interest rates, it said.

The target of FDI in the last fiscal was USD 30 billion, of which the total investment received were about $25 billion.

About 300 CEOs opined that like last fiscal, sectors like services, computer software and hardware, construction, real estate and telecom would lead in getting FDI in 2008-09, Assocham President Sajjan Jindal said.

During January to June, India received FDI to an extent of $22 billion only. During this period, FDI flow from the US towards India stood at $1.3 billion, which is only 6.11% of total FDI of $22 billion received by India during the period.

Out of 400 CEOs interviewed, 280 said stock market would continue to remain in dampen mood as large number of investors have shifted their investments to traditional source of savings channels.