FDI flow takes a hit

Foreign direct investment in India dipped for the second month in a row in April to $2.21 billion, down 5.1% over the year-ago period. FDI in April 2009 was $2.33 billion. “As per the quick estimates, the foreign fund inflows in the opening month of this fiscal were down by 5.1%,’’ an official source said. In March, the inflows had contracted by about 38% to $1.2 billion. The inflows in the first three months of 2010 were $4.96 billion, down 20% from $6.17 billion in the corresponding period last year. Crisil chief economist D K Joshi, however, said that the inflows are expected to remain robust in the coming months. “FDI inflow has not derailed. It was a strong component even during the economic crisis and if nothing goes seriously bad in Europe, the investments would improve,’’ Joshi said.