FDI inflows up 50% at $21 bn during Jan-Aug

Despite the uncertain economic environment globally, Foreign Direct Investment  (FDI) in India surged 50% to $20.76 billion from January-August, according to the industry ministry's latest data.

During January-August 201O, the country attracted FDI worth $13.85 billion.

Experts maintain that the government should further streamline policies and make the environment more conducive to FDI.

The sectors that attracted maximum FDI during the first eight months this year include services (financial and non- financial), telecom, housing and real estate, construction and power, the industry ministry data showed.

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

FDI inflows into India totalled $19.42 billion in 2010-11 financial year, down from $25.83 billion in 2009-10.

Recently, the government further liberalised the FDI regime, allowing overseas investment in bee-keeping and share-pledging for raising external debt.

Besides, the conditions for FDI in construction of old-age homes and educational institutions have been eased. These will not be subject to the minimum and built-up area, capitalisation and lock-in period norms as applicable for the construction activities.