Maharashtra, NCR account for over 50% FDI

Maharashtra, NCR account for over 50% FDI

New Delhi: Maharashtra and the National Capital Region (NCR) accounted for over half the foreign direct investment inflows into the country during April-August this fiscal, according to industry ministry’s latest data.

Maharashtra attracted the highest FDI at $2.43 billion (Rs11,154 crore), accounting for 35% of the inflow in the country, during the first 5-month of the current fiscal.

NCR, including parts of Uttar Pradesh and Haryana, received $1.85 billion (Rs8,476 crore) in FDI during the period. The region accounted for 20% of the total FDI.

During April-August 2010-11, India received $8.88 billion in FDI, the data said.

According to an expert, the main reasons for the maximum inflows in Maharashtra and NCR are substantial improvements in infrastructure and pro-active approach of the governments.

“Infrastructure in these areas has improved considerably and that is making them attractive destination for FDI in India," said Rakesh Joshi, an international trade expert at Indian Institute of Foreign Trade.

Karnataka attracted the third highest FDI inflows worth $936 million during the period, followed by Andhra Pradesh ($451 million), Tamil Nadu ($316 million), Goa ($291 million) and Gujarat ($230 million).

Sectors that attracted high levels of FDI include services, telecom, metallurgical industries, power, computer hardware and software, and construction activities.

The highest FDI of $2.92 came from Mauritius, followed by Singapore ($1.08 billion), USA ($636 million), Japan ($515 million) and the Netherlands ($481 million) in April-August 2010-11.

The government is making sustained efforts to make the FDI policy regime more attractive and investor friendly. It is considering to liberalise FDI in multi-brand retail and the defence sector.

FDI inflow during 2009-10 was $25.88 billion, 5% lower than $27.33 billion in the previous fiscal.