Monday, January 30, 2012

Foreign investment

dearthForeign direct investment(FDI) fell by 27.1 percent from $2150.80 millions in FY10 to $1573.90 millions in FY 11.

There was a decline of 17.2 percent in its value, with the investment falling from $109.80 millions in July 2011 to $90.90 millions in July ,2012.

This does not only hamper GDP growth and employment generation in the country, but also has a battering on the balance of payment which is a big problem for the govt . BOP problem  also exerts pressure on rupee dollar parity.

Law and order situation was main reason but law and order situation has improved somewhat especially on war on terror attacks and suicide bombing. Currently power crisis has taken a big toll on FDI.

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