By IANS,
New Delhi : With foreign direct investment (FDI) in the country slowing, Prime Minister Manmohan Singh Wednesday said the dip in fund inflows was not entirely a reflection of the policies of the government but influenced by the economic actions of developed countries.
“We did not make a mistake. The international environment is such that a lot of funds have gone out of emerging markets,” the prime minister said in a press conference.
FDI inflows had fallen in 2009-10 to about $25.8 billion as the global economy reeled under the effects of an international financial crisis.
Even in this fiscal, a huge upswing in FDI is not very likely. From April-November 2010, FDI inflows stood at $14 billion.
“We are today functioning today in an environment where what happens outside affects us. And therefore it is not easy to say that what happens to the fund flows are entirely a function of our policy,” he said in the 70-minute interaction, which covered all burning issues facing the country.
“It’s also a function of what policies our other friends, particularly the developed countries adopt. But I do agree that it is important that we strengthen our resolve to create a favourable environment for larger flow of funds from abroad,” the prime minister added.