The flow of foreign direct investments (FDI) have increased 18.6 per cent from $ 2,696 million in 1996-97 to $ 3,197 million in 1997-98 even as portfolio investments have fallen by over a-half, from $ 3312 million to $ 1601 million in the period. There has been a marginal increase in total non-resident Indian (NRI) deposits over the previous year from $ 20389 million to $ 20391 million in 1997-98.
A break up of the FDI figures, according to the Reserve Bank of India bulletin for the month of June 1998 reveals that the number of Secretariat of Industrial Approvals(SIA)/FIPB approvals increased from $1922 million in 1996-97 to $ 2754 million in 1997-98. Non-resident Indian (NRI) flows, however, fell from $ 639 million to $ 241 million during this period. A monthly break up of these flows for 1997-98 shows a peaking of SIA/FIPB approvals in April last, a progressive decline to $120 million in August and a pick up in the period September-November. In March 1998, this amounted to $ 249 million.
FII flows declined from 1926 million to $ 752 million in 1997-98. Inflows on account of global depository receipts (GDRs) have also fallen by around 50 per cent from $ 1366 million to $645 million for 1997-98.
