New Delhi:  Foreign Direct Investment (FDI) into India has crossed $100 bn mark to reach $100.33 bn since July 2000. This financial year has seen inflow of $10.5 bn. About 44% of the total investment has taken the Mauritius route due to India’s double taxation avoidance treaty with Mauritius. Investors worldwide are looking to invest in India because of 2 key reasons:
1. Their confidence in Indian growth, currently growing at 6%, which can even touch 8-9% in the coming years once the global economy revives
2. People want to diversify their portfolio by investing in India, which is considered to be safe and dynamic destination.

Our View: This year’s $10 bn in first 6 months is less than $17.2 bn that India had witnessed till this time last year in 2008, pointing towards weak business sentiments the worldwide. FDI investments have great impact on development/introduction of new technology, new managerial capabilities, new benchmarks in corporate functioning.

Links:
http://www.economywatch.com/foreign-direct-investment/fdi-india/year-wise-fdi-inflows.html
http://timesofindia.indiatimes.com/news/business/india-business/FDI-inflow-crosses-100bn-mark/articleshow/5087913.cms
http://www.indiaonestop.com/FDI/FDI.htm