Posterous theme by Cory Watilo

India FDI update (June 2011)

Not that we have not realised the month is August bnut the latest updated FDI flows (verified? Dipp.nic.in) have come in at the expected $5.65 bln for June taking the quarter to $13.44 bln setting up a $50 bln run rate for the year in which the diminished FII flows are expected to be be counterbalanced by the rejuvenation o fFDI flows. For the calendar year the total has notched up to a little under $16 bln after the near dry conditions of Q1 for this Calendar year. Expected after allowing the LLCs to operate is a new secular provision taking a minimum in any sector open to FDI to 51% with Caps lower than 50% in Insurance, and other being revised 

The conundrum in question above is the Domestic or majority domestic interest FDI being treated as local investors making policy overruns posible if the smaller caps are maintained allowing scammy portfolio investors and FDI investors with even 26% stake to invest in any restricted sector in India. Also on the cards is the multi brand FDI roll out in retail, again sidestepping the thorny issue of allowing majority FDI control.