FDIs dip 16% to $2.45 bn in September, fall for second month in a row

The inflows had declined by about 10% to $1.27 bn in August

Foreign direct investments coming to India declined by about 16% to $2.45 billion in September, registering a fall for the second month in a row.

The inflows had declined by about 10% to $1.27 billion in August. In September last year, the country had received foreign direct investments (FDI) worth $2.91 billion.

Foreign investments showed a growth of 15% to $14.47 billion during April-September period of this fiscal, as compared to $12.59 in the same period last year, according to the latest data of the Department of Industrial Policy and Promotion.

Healthy inflows in May ($3.60 billion) and July ($3.50 billion) have helped in registering a positive growth during the first half of the current fiscal.

Amongst the top 10 sectors, telecom received the maximum FDI of $2.46 billion in the six months, followed by services ($1.22 billion), pharmaceuticals ($1.09 billion) and automobile ($1.03 billion).

During the period, India received maximum FDI from Mauritius at $4.19 billion, followed by Singapore ($2.41 billion), the Netherlands ($1.97 billion), the US ($1.19 billion), Japan ($937 million) and UK ($842 million).

In 2013-14, FDI inflows were $24.29 billion as against $22.42 billion in 2012-13.

Decline in foreign investments could put pressure on the country's balance of payments and may also impact the value of the rupee.

The Indian rupee on Friday ended at 61.31 against the US dollar.

India requires around $1 trillion in the next five years to overhaul its infrastructure sector, including ports, airports and highways to boost growth.

The government is taking several steps to boost FDI. It has raised the foreign investment limit to 49% in defence manufacturing and relaxed the policy in construction sector. The government has also proposed to increase the FDI cap in insurance to 49%.