FDI inflow from India surpasses $110m

The highest Foreign Direct Investments (FDIs) inflows of $110 million was from India, followed by Malaysia and the United Arab Emirates (UAE) - $72 million and $66 million, states the Central Bank report 2010.

The telecommunications industry has attracted most of the FDI inflows during 2010. The FDI inflows last year consisted of equity capital of $44 million loans and advances of $112 million by the shareholders, intra-company borrowings of $126 million foreign loans of $39 million and reinvestment of retained earnings of $195 million by the existing companies.

The Foreign Direct Investment(FDI) including loans, during 2010 decreased to $516 million from $601 million in 2009. FDI is long term in nature, the impact of the global financial crisis on foreign equity and debt inflows continued to have an effect on the FDI.

The increase in the reinvestment of retained earnings indicates signs of recovery in FDI. The report states that the FDI outflows increased to $43 million in 2010 from $20 million in 2009. The net FDI inflows during 2010 declined to $473 million from $581 million recorded in 2009.

Investment commitment of contracted projects increased last year compared to 2009 along with the increase in the number of projects contracted, indicating future prospects for realisation of new FDIs.