RBI mulling panel to study slowdown in FDI

Mumbai, Feb 11 (PTI) The Reserve Bank of India (RBI)is considering setting-up a panel to study the slowdown inforeign direct investment (FDI) in the country, a top RBIofficial said.

"The RBI is likely to set up a panel to study theissue and will come out with a report," Reserve Bank of India(RBI) Deputy Governor, K C Chakrabarty, told reporters on thesidelines of an event here today.

He, however, said that "there is no concern over FDIslowing down."

The report is to understand why FDI is slowingdown and what should be done about it, he said.

"If we know why it is slowing down then may be we willget some clue. If a research paper is available then theconcerned people may take some corrective measures,"Chakrabarty said.

The panel will be an internal RBI one, he said.

RBI Governor, D Subbarao, had earlier said that plansare in the works to form a panel to study the slowdown inforeign direct investment.

Subbarao said that the panel would suggest ways toencourage FDI.

India received less foreign direct investment in 2010than the previous year, courtesy a modest recovery in theglobal economy which reduced the risk and expansion appetiteof corporates across the world. .