Kamal Nath says FDI inflows to feel pinch of global financial turmoil

New Delhi, Oct 19 : Commerce and Industry Minister Kamal Nath on Sunday said that foreign direct investment (FDI) into the country would feel the heat of the global financial turmoil.

At a function of chartered accountants, Nath said, "Of course, we will see the impact (of global financial crunch) on our FDI inflows in the next six months."

Nath cited example of how the mood reversed in the stock market since January 2008. "We saw boom in our Sensex in January, when it was over 20,000 and today there is a gloom.

The BSE benchmark Sensex has dipped by over 50 percent from a high of 21,000 in January to below 10,000 on October 17.

Nath further said that foreigh institutional investors (FIIs) have been pulling out of India in the last several weeks, and added that this did not reflect India's fundamentals, but it "shows the inter-connection."

Last week the minister had expressed his optimism about the country's status, and said India would exceed its target of 35 billion US dollars FDI this fiscal.

ANI