The ongoing financial crisis would not impact the flow of foreign direct investment (FDI) in India. The country is still optimistic to attract more FDI due to strong fundamentals of Indian economy. The views were expressed by the Commerce and Industry Secretary, Ajay Shankar.

India received $17.21 billion in FDI between April-September this financial year, which is 137 per cent more than the investment in the first half of the previous fiscal. Government may relax rules for more FDI and take more monetary measures to boost demand for high economic growth. Manufacturing and Military sectors have still good scope for investment and government would relax norms to attract more FDI in these sectors.

FDI flow is likely to remain strong due to huge inflow of funds by companies like General Motors, Volkswagen and Toyota. The government would soon review the FDI policy and may relax norms FDI limits. The Department of Industrial Policy and Promotion (DIPP) would decide on ceiling of FDI for FIIs across various sectors in the next cabinet meeting.