FDI inflows down 22% to $21 bn in 2010

India received foreign direct investment (FDI) worth $21 billion (Rs 96,104 crore) in the 2010 calender year, a decline of 22 per cent over the previous year, a latest industry ministry data said.

The country had attracted FDI valued at $27 billion (Rs 130,980 crore) in 2009.

According to experts, foreign investors are cautious due to the fragile global economic recovery.

“The global economic recovery is weak, especially in Europe... I think, this is affecting the FDI flow in India,” an economist said, adding that procedural delays in the country were also affecting the inflows adversely.

In view of declining FDI inflows, the Reserve Bank of India is considering to set up a panel to find out the reasons for FDI slowdown and suggest ways to encourage it.

During the April-December period of the current financial year, FDI declined 23 per cent to $16.03 billion from $20.86 billion in the same period last year.