India''s FDI in 2010 dips by 22 pc to USD 21 bn

Posted By: Pti
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New Delhi, Feb 20 (PTI) India received foreign directinvestment (FDI) worth USD 21 billion (Rs 96,104 crore) in thecalender year 2010, a decline of 22 per cent over the year agoperiod, a latest industry ministry data said.

The country had attracted FDI valued at USD 27 billion(Rs 130,980 crore) in 2009.

According to experts, foreign investors are cautious dueto the fragile global economic recovery.

"The global economic recovery is weak, especially inEurope...I think, this is affecting the FDI flow in India," aneconomist said, adding that procedural delays in the countryare also affecting the inflows adversely.

In view of declining foreign investment inflows, theReserve Bank of India (RBI) is considering to set up a panelto find out the reasons for FDI slowdown and suggest ways toencourage it.

During the April-December period of the current fiscal,FDI declined by 23 per cent to USD 16.03 billion from USD20.86 billion in the same period last year.

The main sectors that attracted FDI include services(financial and non-financial), telecommunications, housing andreal estate, construction activities and power, the datasaid.

Countries, including Mauritius, Singapore, the US, UK,Netherlands, Japan, Germany and UAE are the major investors inIndia.

In 2009-10, India''s FDI had declined to USD 25.88 billionfrom USD 27.33 billion in the previous financial year.

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