FDI inflows have gone up sharply in first quarter according to RBI reports

By Pradeep Yuvaraj | September 1, 2011

According to the Reserve Bank of India’s balance of payments data released recently, the  net direct investment into India has increased significantly by $7.2 billion during the April to June 2011 period, against $2.9 billion in the corresponding quarter last year.

Reports said that the net loans offered by banks were at $11.5 billion compared with $2.9 billion in Q1 of 2010-11. This was mainly due to the draw down of their foreign currency assets that were held abroad and also due to the rise in overseas borrowings.

RBI reports also said that the net loans offered by the non-Government and non-banking sectors (net ECBs) were at $2.9 billion and the net inflows under short-term trade credit moderated to $3.1 billion in Q1 of 2011-12, as compared to $4.3 billion in Q1 of 2010-11.

Reports also said that the foreign exchange reserves have increased by $10.9 billion during the quarter, due to the depreciation of the US dollar against major international currencies during the quarter.

RBI reports added saying that the rise in the trade deficit, in spite of a sharper growth in exports than imports and an increase in net export of services, has caused the extension of the current-account deficit (CAD) as compared with Q1 of the previous year.

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About Pradeep Yuvaraj

Pradeep Yuvaraj is a Co-Founder and Director at Finerva Financial Solutions Private Limited, a financial education company focused on personal finance education. He has penned over 250 articles relating to Personal Finance and clocked over 500 hours of educating individuals on managing personal finance. He is a serial entrepreneur and has been associated with 7 Start-ups. His entrepreneurial experience spans industries as varied as Education, Gas Engineering, Automobile Design, Software development and more recently a Pure play presentation design company. Prior to turning entrepreneur in 2005, he has worked for 3 of the top ten companies of the world - Shell, ExxonMobil and Total SA. This experience included handling Branch Operations, Channel Sales and Business Development across 5 states over a period of 8 years. He holds an MBA from Symbiosis and an Electronics Engineering Degree from the University of Pune.

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