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FDI inflows expected to improve in 2013, says Sharma

In order to increase FDI inflows, the government has recently liberalised the foreign direct investment policy

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Press Trust of India Davos
Last Updated : Jan 29 2013 | 2:34 PM IST

India is expecting a healthy flow of foreign direct investment (FDI) during the current year on the back of renewed interest of overseas investors.

"I admit that last year was a difficult year. It was because of perception, which was based on some misgivings and those that were based on some discourse that took place...But now I can see a turning taking place, I see a renewed interest, I see a hope that 2013 will be a better year," Commerce and Industry Minister Anand Sharma said here today.

Sharma is here for the annual WEF meeting.

During January - November 2012, India has received FDI worth $21.68 billion, a decline of 33% over the same period of previous year.

In order to increase FDI inflows, the government has recently liberalised the foreign direct investment policy.

The government liberalised FDI policy in sectors including multi-brand retail, single-brand retail, commodity exchanges, power exchanges, broadcasting, non-banking financial institutions and asset reconstruction companies.

"If our economy keeps the growth momentum, the capital will find its right way and right place to where the opportunities exist. India is the country which beckons the world today," Sharma said.

The Indian economy registered a GDP growth of 5.3% for the quarter ended September last year. The economy grew by 5.5% in the June quarter and 6.7% in the quarter ended September 30, 2011.

Meanwhile, Pharma major MSD International GmBH President (Emerging Markets) Kevin Ali, who was also present at the meeting, said: "We have a facility in India and it is a key country for our future growth".

Asked if he was convinced about the growth potential of India, he said: "Yes, I am".

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First Published: Jan 25 2013 | 2:15 PM IST

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