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FDI inflows into India during 2009 have crossed Rs. 80,000 crores and this is the highest ever flow into the country in rupee terms. The attractiveness of India for FDI is far from receding and can surely be expected to sustain over the next decade as well.
2008, the year of the greatest recession the world has seen since the Great Depression, has convincingly proved that India’s growth is not purely FDI dependant. India experienced a growth of over 6% during a year when the world economy contracted 5.5% and when there was a net exodus of capital to the tune of almost Rs. 50,000 crores. Despite huge withdrawal of capital to meet commitments in the home country, countries such as the United States saw a contraction in their economy by 3.5% while the United Kingdom is yet to emerge from the recession. On the other hand, the growth rate of India declined by a modest 2-3% and is on track to regain its 9% growth by the next fiscal year, according to recent projections released by the Finance Minister and Ernst & Young.
