Foreign direct investment (FDI) in India may cross $35 billion in 2011-12 as against $19.4 billion in the last fiscal, on account of major deals such as RIL-BP and Posco.
"I would expect the FDI to cross $35 billion... Big investment projects like RIL-BP deal and Posco would help in pushing the numbers," a senior official said.
Foreign investors are confident of India's economic growth as even during the peak of the global economic crisis, the country's GDP registered a healthy growth rate, the official said.
In 2008-09 and 2009-10, India's GDP grew by 6.8% and 8%, respectively. During these periods, most of the western economies had registered a dismal growth.
The government on July 22 cleared the BP Plc buying 30% stake in most of Reliance Industries' oil and gas blocks, including the showpiece KG-D6 gas fields, for $7.2 billion, one of the biggest foreign direct investments in India.
In May, the Environment Ministry had given conditional approval to South Korean steel giant Posco's $12 billion steel plant in Orissa, the country's biggest single FDI project. The company is negotiating terms and conditions with the Orissa government.
In May and June, foreign direct investment in the country jumped 111% and 310%, respectively, to $4.66 billion and $5.65 billion, respectively.
"Going by the growth rate of FDI in the last few months, we may touch this ($35 billion) figure," KPMG Executive Director Krishan Malhotra said.
Malhotra said it was the right time for the government to introduce reforms like allowing FDI in multi-brand retail to capitalise on the downfall of western markets like the US and Europe and make India as an attractive investment destination.
In the April-June period of the current fiscal, FDI went up by a massive 133% to $13.44 billion from $5.77 billion in the corresponding period last year.
However, in 2010-11, FDI into India declined to $19.43 billion from $25.6 billion in 2009-10. In 2008-09, FDI stood at $27.3 billion.