The Government appears optimistic that this year India's FDI inflows will show a strong, positive trend.
In the first two months of the fiscal year (i.e., April and May 2011) India received just under US$ 8 billion in FDI inflows. That amount represents a 77 percent increase over inflows received in the same period last year.
The Government also believes that some recent mega deals are indicators of not just the positive trend but of continuing investor confidence in India. These mega deals include the proposed tie-up between BP and Reliance, likely to generate over US$ 7 billion in FDI, Vodafone’s purchase of Essar’s stake (a US $ 5 billion transaction), and the recent POSCO and Cairn-Vedanta transactions (a US$ 8-9 billion transaction).