India's FDI inflows up 12% at $2 bn in Feb

Foreign direct investment into India grew for the second consecutive month in February this year to $ 2.01 billion, up 12.29%.

In February 2013, the FDI was at $ 1.79 billion according to the data by the Department of Industrial Policy and Promotion.

However, for the April-February period of last fiscal, FDI inflows dipped 0.6% to $ 20.76 billion, from $ 20.89 billion during the first 11 months of 2012-13.

The highest FDI came in services ($ 2.18 billion), followed by automobiles ($ 1.28 billion), pharmaceuticals ($ 1.27 billion) and construction development ($ 1.05 billion) in the 11 months of 2013-14.

Mauritius led the inflows into India with $ 4.48 billion, followed by Singapore ($ 3.91 billion), UK ($ 3.21 billion) and the Netherlands ($ 2.20 billion).

In January 2014, FDI had increased 1.5% at $ 2.18 billion.

The country needs foreign investment to help regain its growth momentum. India's economic growth slowed to a decade's low of 4.5% in 2012-13.

India is estimated to require about $ 1 trillion between 2012-13 and 2016-17, the 12th Five-Year Plan period, to fund infrastructure projects.

A decline in FDI would hurt the rupee, which depreciated to a record low of 68.85 against the US dollar on August 28 last year. Since then the local currency has rebounded and is hovering at 61 per dollar.