FDI in Nov dips by about 7 pc to USD 1.6 bn

New Delhi, Jan 4 (PTI) With economic recovery in the rich
countries remaining fragile, FDI inflows to India dipped for
the second consecutive month, falling by about 7 per cent to
USD 1.6 billion in November 2010 over the same period last
year.
In November 2009, FDI stood at USD 1.72 billion.
During the first eight months of 2010-11, India received
Foreign Direct Investment (FDI) inflows worth USD 14.02
billion, a decline of 27.4 per cent over the corresponding
period of previous year, an official told PTI.
During April-November 2009-10, the foreign inflows stood
at USD 19.32 billion.
The inflows remained low despite a recent World Bank
study stating the FDI flows into developing countries,
including India, is expected to recover over the next couple
of years.
"The sluggish and fragile financial recovery in western
countries like the US and Europe could be one of the reasons
for slowdown in FDI in India, the official said.
CRISIL’s principal economist D K Joshi said FDI inflows
are "lumpy in nature" and they keep fluctuating on monthly
basis.
After rising in September 2010, FDI inflows in October
2010 dipped by about 40 per cent to USD 1.4 billion from USD
2.3 billion in the same period last year.
The inflows in September 2010 was up by 40 per cent from
the same month last year.
However, the government is making efforts to attract more
and more FDI into the country.
It is considering liberalising FDI in defence and
multi-brand retail sector.
The main sectors which attracted foreign direct
investment includes services (financial and non-financial),
telecommunication, housing and real estate, construction
activities and power.
Countries including Mauritius, Singapore, the US, UK,
Netherlands, Japan, Germany and UAE are the major investors in
India.
FDI for 2009-10 at USD 25.88 billion was also lower by
five per cent from USD 27.33 billion in the previous fiscal.
PTI