Apr 23, 2013, 10.11 AM | Source: PTI
India received foreign direct investment (FDI) worth USD 1.79 billion in February, 2013- a decline of about 19 percent due to global economic slowdown.
In February 2012, the country had received FDI worth USD 2.21 billion. In January this year, the country had attracted USD 2.15 billion FDI.
During the April-February period of 2012-13, FDI has declined 38 per cent to USD 20.89 billion, an official in the Department of Industrial Policy and Promotion (DIPP) told PTI. During the same period of the previous fiscal, FDI inflows stood at USD 33.49 billion.
Sectors which received large FDI inflows during the 11 months of the last fiscal include services (USD 4.74 billion), hotel and tourism (USD 3.21 billion), metallurgical (USD 1.39 billion), construction (USD 1.26 billion) and Pharmaceuticals (USD 1.11 billion), the official added.
India received maximum FDI from Mauritius (USD 8.97 billion), followed by Japan (USD 2.11 billion), Singapore (USD 1.98 billion), the Netherlands (USD 1.67 billion) and the UK (USD 1.06 billion).
According to industry experts there is a need to improve business environment in the country.
"There is a need to further improve the business environment. Reforms in the last one year are welcome, but more needs to be done in order to build foreign investors confidence," Head of Tax and expert on FDI with corporate law firm Amarchand & Mangaldas Krishan Malhotra said.
In November 2012, India attracted FDI worth USD 1.05 billion, which was a two-year low. The inflows had aggregated to USD 36.50 billion in 2011- 12, as against USD 19.42 billion in 2010-11 and USD 25.83 billion in 2009-10.
India would require around USD 1 trillion in the next five years to overhaul its infrastructure sector such as ports, airports and highways to boost growth. Decline in foreign investments could put pressure on the country's balance of payments and may also impact the value of the rupee.