Take steps to boost FDI: Assocham to govt

The government should take strong policy decisions to make India an attractive destination for foreign direct investments (FDI), industry body Assocham said today.

In 2010-11, India's FDI declined by 25% to $19.4 billion over the same period last year.

In 2009-10 also, foreign inflows dipped by 5% to $25.8 billion over previous fiscal.

The substantial decline in FDI in the last fiscal was mostly in high-growth potential sectors like housing and real estate, construction activities and telecommunications, it said.

"Policy makers should make concerted efforts to make the country an attractive destination for foreign investments," the chamber said.

It said that India has the lowest FDI inflow in comparison to most BRICS nations. BRICS member are Brazil, Russia, India, China and South Africa.

"India- with its relatively well-developed financial sector, industrial base and critical mass of well-educated workers – appears to be well-placed to reap the benefits of FDI," it added.