Home / Knowledge / News / FDIs to fall short by US$ 7-8 bn in 08-09, ASSOCHAM
FDIs to fall short by US$ 7-8 bn in 08-09, ASSOCHAM
26
Jun '08
India's ambitious target to receive US$ 35 billion of foreign direct investments (FDIs) in fiscal 2008-09 is likely to fall short by US$ 7 to 8 billion due to global slowdown and continued volatility on its economic and political front, says a Survey of Chief Executive Officers conducted under the aegis of The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

The survey in which 400 CEOs opinions were polled on Realistic Assessment of FDI's inflow towards India, 350 CEOs said that India could optimally receive about US$ 28 billion in 2008-09 against the target of US$ 35 billion.

The reasons cited for lower FDI's include adverse sentiments in the stock market, bottlenecks on infrastructure, continuation of Press Note 1, government inability to sign nuclear deal, no initiatives on disinvestments, rising interest rates and volatility on economic and political front because of inflation and forthcoming elections.

Nearly 300 CEOs held a view that services sector followed by computer software and hardware, telecom, construction activities, housing and real estate will respectively receive FDI's in 2008-09 as happened in the last fiscal that came to an end on 31st March 2008.

It may be mentioned here that the Ministry of Commerce had set the target of FDI's in last fiscal for US$ 30 billion of which, the total FDI receive were to the tune of about US$ 25 billion.

Ever since, the economy was opened up in July 1991, in the last 17 years, the total FDI's received are estimated around US$ 61 billion.

Releasing the survey, the ASSOCHAM President, Mr. Sajjan Jindal said that the financial year 2008-09 has begun with difficult time in which the inflationary pressures mounted beyond manageable limits, the adverse impact of which on Indian Inc has been substantial in the sense that the yearly profitability of Indian industry would suffer a beating to an extent of 15-20%.

The sentiments are extremely negative as not only industrial production has been falling because of manufacturing sector not doing too well.

No doubt, agriculture has done better and is expected to do still better because of anticipated good monsoon but agriculture alone doing well will not enhance the country's GDP.

230 CEOs held that mining, refining, petrochemicals and petroleum sector including cement and steel have not been doing well despite their demand in the market. This again will not augur for well as their contributions to GDP is not going to be significant.

According to 280 CEOs, stock market will continue to remain in dampen mood as large number of investors have shifted their investments to traditional source of savings channels.

All these factors put together do not send good signals to investors especially overseas and their strategy will be that of wait and watch in which the FDI's will suffer towards India.

About 320 CEOs were of the view that foreign investors are keeping a watch on elections in four state and thereafter, their outcome and again the Parliamentary pool in 2009.

Must ReadView All

Textiles | On 28th Feb 2017

China's textile & apparel exports up 10.2% in Jan 2017

Exports of textiles and garments from China resumed growth in the...

Apparel/Garments | On 28th Feb 2017

Delta Galil's Q4 operating profit jumps 80%

In the three months to December 31, 2016, operating profit at apparel ...

View of YiwuTex 2016; Courtesy: YiwuTex

Textiles | On 28th Feb 2017

Smart knitting system to grace 18th YiwuTex 2017

The thematic functional knitting machinery zone at the 18th YiwuTex...

Interviews View All

Amardeep Singh
Orient Craft

'In export markets, the trend in terms of embroidery, is towards matte...

Evelyne Cholet
UCMTF

‘France had a reputation of being big in new ideas, but poor in marketing...

Amrit Sethia
SOIE

‘The intimatewear category in India is slowly becoming trend-sensitive.’

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
February 2017

February 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search