FDI declines 26 per cent in Jan-Sept

Foreign direct investment (FDI) inflows into India stood at $15.97 billion in the January-September period, down 26 per cent vis-a-vis the same period last year, according to commerce ministry data.

In January-September 2009, the country had attracted FDI to the tune of $21.44 billion.

The countries that pumped the highest foreign capital into the Indian economy during the nine-month period were the Mauritius, Singapore, the US, UK, the Netherlands, Cyprus, Japan, Germany and France.

According to an expert, the main reason for the fall was the sluggish recovery of major markets like the US and Europe.

“The sluggish economic recovery in countries like the US and Europe could be one of the major reasons for FDI slowdown in the country,” Rakesh Mohan Joshi, an international trade expert with the Indian Institute of Foreign Trade, said.