FDI inflows slump to 2-year low at $1.05 billion in November

For the April-November period the FDI inflows have declined by about 31% to $15.84 billion from $22.83 billion in the year-ago period


New Delhi: India's foreign direct investment (FDI) inflows declined to a nearly two-year low of $1.05 billion in November 2012, mainly due to global economic uncertainties, reports PTI.


In November 2011, the country had attracted FDI worth $2.53 billion.


For the April-November of FY13 the inflows have declined by about 31% to $15.84 billion from $22.83 billion in the year-ago period, a senior official in the Department of Industrial Policy and Promotion (DIPP) told PTI.


According to experts, problems in the global economic situation are the main reasons for decline in the inflows.


“The global economic slowdown and lack of political consensus on FDI related matters are the reasons for decline,” said Krishan Malhotra, Head of Tax and expert on FDI with corporate law firm Amarchand & Mangaldas.


Sectors which received large FDI inflows during the eight months of the current fiscal include services ($3.63 billion), hotel and tourism ($3.13 billion), metallurgical ($1.26 billion), construction ($1.01 billion) and automobile ($760 million), the official added.


India received maximum FDI from Mauritius ($7.2 billion), Japan ($1.56 billion), Singapore ($1.5 billion) the Netherlands ($1.09 billion) and the UK ($615 million).


The previous low was recorded in January 2011 when the FDI inflows slipped to $1.04 billion.


The inflows had aggregated to $36.50 billion in 2011-12 against $19.42 billion in 2010-11 and $25.83 billion in 2009-10.


Foreign investments are important for India, which needs around $1 trillion in the next five years to overhaul its infrastructure sector such as ports, airports and highways to boost growth.


Decline in foreign investments will put pressure on the country’s balance of payments and could also impact the rupee.


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Karnataka crisis: 2 ministers from the BJP govt resign; 11 more MLAs ready to quit

A cloud of uncertainty has been hanging over the Shettar ministry ever since Yeddyurappa quit the party to float his KJP in December last as the ministers who resigned and 11 MLAs who are ready to quit are loyalists of the former BJP strongman


Bangalore: The Bharatiya Janata Party (BJP) government in Karnataka on Wednesday plunged into a fresh crisis with two ministers resigning and 11 more members of the legislative assembly (MLAs), all loyal to former party strongman BS Yeddyurappa, deciding to quit their assembly membership, reports PTI.


Hours after public works minister CM Udasi and energy minister Shobha Karandlaje gave their resignations to chief minister Jagadish Shettar, the two along with 11 MLAs went to the assembly speaker’s office to submit their resignation.


As neither speaker KG Bopaiah, who was not in station, nor the assembly legislature secretary Omprakash were present when the MLAs arrived and waited for an hour, an enraged Yeddyurappa rushed there, insisting that the Shettar government had been reduced to a minority.


In a high drama, the agitated MLAs insisted that some official of assembly secretariat either receive their resignation letters or give an acknowledgement that they are not empowered to receive them.


Assembly joint secretary Jayatheertha Galali told the MLAs “as joint secretary I can’t accept it. Please come and submit resignations when th espeaker comes to office”.


Yeddyurappa, who recently floated the Karnataka Janata Party (KJP), said: “Shettar government has been reduced to a minority. He has no moral right to continue in office. He should call off his tour, return to the city and resign.”


Yeddyurappa also attacked Bopaiah, who, he said, had been alerted yesterday about the resignation of MLAs, but has left on a tour.


“It is a shameless government. Shettar should meet the governor and tender resignation of his government”, he said.


“We will tell the governor that this government cannot continue in office as it has been reduced to a minority”.


Shettar, who left on an official tour in parts of North Karnataka, confirmed that the two ministers have resigned.


Udasi said they have been hurt by the attitude of Shettar towards MLAs and ministers supporting Yeddyurappa, adding, the time has come to build KJP.


A cloud of uncertainty has been hanging over the Shettar ministry ever since Yeddyurappa quit the party to float his KJP in December last. The former BJP strongman has repeatedly put the government on notice about their stability, claiming support of 20-30 BJP MLAs.


Yeddyurappa’s party had set two deadlines earlier to unseat the government but they turned out to be damp squibs.


Brushing aside the threats to his government, Shettar has said he would present the state budget on 8th February, the last ahead of assembly polls due in May.


The MLAs who have offered to quit are CM Udasi, Nehru Olekar, Thippeswamy, BP Harish, H Halappa, Suresh Gowda Patil, Shobha Karandlaje, SI Chikkangoudar, Suresh, G Shivanna, Chandrappa, VS Patil and Basavaraj Patil Attur.



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