FDI in services jumps 3-fold during April-June

Foreign direct investment (FDI) into India's services sector tripled to $2.19 billion (Rs 9,802 crore) during the first quarter of the current fiscal, according to the Industry Ministry's data.

The financial and non-financial services sector had attracted FDI worth $695 million (Rs 3,149 crore) during the same period of 2010-11.

According to experts, uncertain economic conditions in western markets are creating opportunities in emerging economies like India.

"Foreign investors are looking at India as western markets are reeling under debt crisis," an economist said.

Overall FDI inflows during April-June 2011-12 jumped 133% to $13.44 billion from $5.77 billion in the same period of the previous fiscal.

The Commerce and Industry Ministry had said that it appeared that the recent trend of dip in FDI inflows had been reversed in the current financial year.

Services sector contributes over 50% to India's economy.

Despite increase in FDI in services sector, drugs and pharmaceutical segment attracted maximum investment worth $2.99 billion during the first quarter of the current fiscal.

Telecommunication was the third best sector which attracted $1.21 billion investment, followed by power ($859 million), computer software and hardware ($703 million) and automobile ($436 million).

During the period, the highest FDI of $4.52 billion came from the Mauritius, followed by Singapore ($2.67 billion), the UK ($2.47 billion) and Germany ($1.25 billion).