The increase in foreign direct investment may signal the beginning of the end of stagnation in investment and an improvement in the general economic situation.
The increase in FDI inflow to $4.06 billion this year as against $2.46 billion last year had come at a time when questions were being raised about India attracting FDI in the future, said the Confederation of Indian Industry (CII).
The rise in FDI showed that foreign investors were not averse to investing in India. Instead, there was a greater appreciation of investment outlook in the country, it added. With the growth taking off again, there was a possibility of further rise in FDI in the current fiscal, it added.
FDI inflow would continue at a steady pace in the year ahead, despite recent developments, because India was perceived as a stable investment destination in the long-term, it added.
