Pol controversies apart, FDI inflows almost doubled in Q1:FM

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Asserting that political controversies in India did not dent the investor sentiment, Finance Minister Pranab Mukherjee on Monday said FDI inflows rose to more than USD 7.9 billion during April-June quarter, which is almost twice the amount received during the year-ago period.

"The ground reality is that in the last three months, India received more than USD 7.9 billion FDI, almost double the amount recorded during the corresponding period in the previous year .It speaks of the investment climate," Mukherjee said answering a question if political controversies in the country had caused distress to investors.

"Our projections we have made in the budget, I have not addressed, because the first quarter figures are not yet available. I don't visualise any substantial change," he added.

Holding a joint press conference with British Chancellor of Exchequer George Osborne after their meeting here, Mukherjee said inflation and fiscal consolidation are areas of concerns.

"We cannot allow fiscal deficit to go up-- it reached 6.5 per cent of GDP; it has been brought down to 4.7 per cent during 2010-11," he noted.

Food inflation has come down from 22 per cent in February 2010 to 8 per cent now, he said.

"Even 8 per cent food inflation is not acceptable, he added.

He said that during the last 10 years, India has received total FDI investment of USD 176 billion, while Indian companies have invested USD 76 billion outside.

Both Mukherjee and Osbourne asserted that there was need for both countries to work together in close cooperation not only at bilateral level but at the international fora, including G-20.

Mukherjee said "World economy is on the recovery path but much more has to be done."

The Finance Minister added that the BP-Reliance multi-billion dollar deal would help meet India's energy needs.

Besides, India's Essar Energy has taken possession of the Shell's refinery at Stanlow in Cheshire in the UK on Monday.

Mukherjee said 600 Indian companies had invested in the UK while Osborne said 3,000 British companies are "involved in India.