'Current fiscal FDI may miss target by $10-bn'

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The foreign direct investment to the country may miss the current fiscal target by as much as USD 10 billion in the backdrop of a global economic slowdown and the US financial crisis, CEOs said in a survey.

In a survey of CEOs by industry body Assocham, majority said India could optimally receive about USD 25-26 billion of FDIs in 2008-09 fiscal against the targeted volume of USD 35 billion.

Other factors that may hinder the investment flow includes, adverse sentiments in the stock market, bottlenecks on infrastructure, no initiatives on disinvestments, rising interest rates, it said.

The target of FDI in the last fiscal was USD 30 billion, of which the total investment received were about USD 25 billion, it added.

About 300 CEOs opined that like last fiscal, sectors like services, computer software and hardware, construction, real estate and telecom would lead in getting FDI in 2008-09, Assocham President Sajjan Jindal said.

During January to June, India received FDI to an extent of USD 22 billion only. During this period, FDI flow from the US towards India stood at USD 1.3 billion, which is only 6.11 per cent of total FDI of USD 22 billion received by India during the period, it said.