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FDI dips 16.5 pc to $1.76 bn in September

New Delhi: Reflecting fragile recovery in the world`s major economies, foreign direct investment into India dipped 16.5 per cent to USD 1.76 billion in September. In comparison, the country had attracted FDI worth USD 2.11 billion in the same month last year.

While in August foreign investment inflows had increased over two-fold to USD 2.83 billion, year-on-year, in July they declined after a significant jump for two consecutive months — May and June. During the April-September period, the FDI went up by about 74 per cent to USD 19.13 billion, from USD 11 billion in the year-ago period as inflows were robust in the initial months, a senior official in the Department of Industrial Policy and Promotion (DIPP) told PTI.

Despite uncertainties in the global economy, FDI may touch USD 35 billion in 2011-12, as against USD 19.4 billion in the last fiscal on account of major deals like RIL-BP and Posco, the official added.

In 2010-11, equity inflows through the FDI route had dipped 25 per cent to USD 19.43 billion, from USD 25.6 billion in 2009-10. In 2008-09, FDI stood at USD 27.3 billion.

According to experts, uncertain economic conditions in the US and Europe are one of the major reasons for the declining FDI in India. Mauritius, Singapore, the US, the UK, the Netherlands, Japan, Germany and the UAE are major sources of FDI for India.

During April-September, the sectors that attracted the maximum FDI include services, construction activities, power, computers and hardware, telecom and housing and real estate. Wooing global investors by easing FDI procedures, the Reserve Bank yesterday said that transfer of shares between Indians and non-residents will not require its permission in several key areas like financial services.

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