FDI down 26% during January-September: DIPP

FDI down 26% during January-September: DIPP

New Delhi: Foreign direct investment in India stood at just $15.97 billion during the January- September, 2010, period, down 26% vis-a-vis the same period last year, as per Industry Ministry data.

In January-September, 2009, the country attracted Foreign Direct Investment (FDI) worth $21.44 billion.

The countries that pumped the maximum foreign capital into the Indian economy during the nine-month period were the Mauritius, Singapore, US, US, Netherlands, Cyprus, Japan, Germany and France.

As per an expert, the main reason for the decline in foreign inflows was the sluggish recovery of major markets like the US and Europe.

“The sluggish economic recovery in countries like the US and Europe could be one of the major reasons for FDI slowdown in the country," Rakesh Mohan Joshi, an international trade expert with the Indian Institute of Foreign Trade (IIFT) said.

According to data from the Department of Industrial Policy and Promotion (DIPP), the nodal agency for FDI-related matters, the sectors that attracted the maximum foreign inflows include services (financial and non-financial), computer software and hardware, telecommunications, housing and real estate, power and automobiles.

Snapping a three-month-long declining trend in FDI inflows, India garnered foreign direct investment worth $2.11 billion in September, an increase of about 40% vis-a-vis the same month last year.

To attract more investment, the government has said it is considering liberalising FDI in the multi-brand retail and defence sectors.

Foreign Institutional Investors (FII) have poured huge sums of money into the Indian economy so far this year, which were valued at $39.15 billion till date.