FDI Doubles As Govt Adopts New Method

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Mumbai/ New Delhi, June 30:: The revised format for compilation of foreign direct investments (FDI), evolved by adding 14 more items into the FDI data, has taken FDI inflows up by $1.68 billion and $2.22 billion for 2000-01 and 2001-02 respectively.

The technical monitoring group, which submitted its report last Friday, has categorised FDI in 14 items under three headings of equity capital, reinvested earnings and other capital. The group, set up to bring the reporting system of the FDI data in alignment with international best practices, comprised representatives from the Reserve Bank, department of industrial policy & promotion, department of economic affairs, department of company affairs and National Informatics Centre. As per new method, the total FDI inflow has shot up to $4.03 billion and $6.13 billion during the two years for which the data have been revised.

However, as a result of application of the new methodology, the current account surplus during 2001-02 at $1.4 billion has been revised at $0.8 billion. The current account deficit during 2000-01 increased from $2.6 billion to $3.6 billion.

On the other hand, the foreign investment from the country has also shot up by $243 million and $751 million respectively during 2000-01 and 2001-02 to touch $757 million and $1.39 billion respectively.

The 14 items under three major heads of the FDI data will by and large comply with reporting similar to international best practices.