FDI down by 11% in March to $1 bn, 25% in FY11

Foreign direct investment (FDI) in India declined for the third consecutive month in March, dipping by 11% year-on-year to $1.07 billion in the backdrop of financial turmoil in Europe.

The country received $1.2 billion in FDI in the corresponding period last year.

During the fiscal 2010-11, the inflows declined by 25% to $19.43 billion, which makes it imperative for the country to fine-tune its policies to attract overseas investment, sources told PTI.

The FDI during 2009-10 had totalled $25.83 billion during 2009-10, which, too, was lower than $27.33 billion invested in the previous fiscal.

"The numbers are not healthy, the government has to take more steps," sources said.

The Department of Industrial Policy and Promotion (DIPP), the nodal agency on FDI policies, has initiated steps, including consolidation of all related rules and regulations into a single document.

In January and February FDI dipped by 48% ($1.2 billion) and 30% ($1.04 billion), respectively, over the same period previous year.

The sectors that attracted FDI include services, telecommunications, housing and real estate, construction activities and power.

Mauritius, Singapore, the US, the UK, the Netherlands, Japan, Germany and the UAE are the major investors in India.

Foreign institutional Investors have invested $3.6 billion during January 1- May 5, 2011 period.