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May 8, 2013

Indian Govt. Clears 17 FDI Proposals

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fdi in india
In a significant development in the Foreign Direct Investment Arena, the government of India has given green signal to 17 foreign direct investment (FDI) proposals worth Rs.262.52 crore considering the recommendations of the Foreign Investment Promotion Board (FIPB) on Tuesday.

The move will boost the market sentiments in India, which has been green this month. The stock markets were advanced due the rate cut by the Reserve Bank of India (RBI) and right market conditions in May.

However, the political issues might affect the trading but the with the UPA government continuing its economic reforms to bring back the economy from the clutches of the slowdown, are certainly to gain the confidence of the investors both domestic and foreign investors.

According to media reports, the investments have been pouring into India, in the first week of May as the FIIs have pumped around Rs.26000 crores in Indian equity markets. That shows that the foreign investors have faith on the stock market and ultimately the economy is on the back to track of good growth rate.

The growth rate of five percent is however low, but in the conditions of the slowdown; the rate could be justified since in 2008 recession Indian economy had sustained the growth rate, whereas other economies in the world have tumbled to recession.

The more and more inflow of fund will give boost the liquidity in the market as well as in the economy.


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