The Empirical Evidences of Slowdown of FDI Inflow in India Since 2009

Foreign Direct Investment inflow in India has played a major role in the recent past. The fall of stock market in the month of May 2012 can be seen as a reason of the portfolio pull out of the FII's from the market. The paper is an attempt to gather the empirical evidences to see the slow down of the FDI investments in India since 2009. The statistics published by the Department of Industrial Policy and Promotion (DIPP) and Reserve bank of India manual reveals that the Foreign Direct Investment has moderated since 2009. The paper attempts to study this fallout in the light of the potential India has for the investment. This paper has tried to analyse the Direct investment and the Portfolio investment from 2009-12 and collect the evidences to prove the moderation in the FDI inflow in India. In 2010-11 the FDI inflow has been US $ 32,901; which is a warning bell for the nation's economy. But so far 2011-12 is seeing again an increase in the FDI inflow compare to the previous year. By February 2012 the FDI inflow had been US $ 41,891 million as compared to the US $ 32,901 million last year till April 2011. This can be seen as a positive sign for the economy's growth. The reforms needed to attract the FDI inflow must be taken strongly and quickly; at a time when the world economy is experiencing the jitters of recession. The Indian economy has strong foundations and thus has the capacity to endure for a longer period any strong effects of external factors