Dip in FDI not a reflection of our policies: PM

February 16th, 2011 - 3:49 pm ICT by IANS  

Manmohan Singh New Delhi, Feb 16 (IANS) With foreign direct investment (FDI) in the country slowing, Prime Minister Manmohan Singh Wednesday said the dip in fund inflows was not entirely a reflection of the policies of the government but influenced by the economic actions of developed countries.”We did not make a mistake. The international environment is such that a lot of funds have gone out of emerging markets,” the prime minister said in a press conference.

FDI inflows had fallen in 2009-10 to about $25.8 billion as the global economy reeled under the effects of an international financial crisis.

Even in this fiscal, a huge upswing in FDI is not very likely. From April-November 2010, FDI inflows stood at $14 billion.

“We are today functioning today in an environment where what happens outside affects us. And therefore it is not easy to say that what happens to the fund flows are entirely a function of our policy,” he said in the 70-minute interaction, which covered all burning issues facing the country.

“It’s also a function of what policies our other friends, particularly the developed countries adopt. But I do agree that it is important that we strengthen our resolve to create a favourable environment for larger flow of funds from abroad,” the prime minister added.

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