Foreign direct investment (FDI) into India dipped by over 50 per cent to $1.16 billion in October for the second month in a row.
The country had received $2.33 billion overseas investment in the same month last year. In September, the inflows were at $1.76 billion, down by 16.5 per cent year-on-year.
However, during the April-October period, FDI went up by 50.3 per cent to $20.8 billion, from $13.84 billion in the year-ago period as inflows were robust in the initial months, a senior government official said.
In August foreign investments had increased over two-fold to $2.83 billion, year-on-year. In July it declined after a significant jump in May and June. Despite uncertainties in the global economy, FDI may touch $35 billion in 2011-12, against $19.4 billion in the last fiscal on account of major deals, the official added.
In 2010-11, equity inflows through the FDI route had dipped 25 per cent to $19.43 billion, from $25.6 billion in 2009-10. In 2008-09, foreign direct investment stood at $27.3 billion.
According to experts, uncertain economic conditions in the US and Europe are one of the major reasons for the declining FDI in India. Mauritius, Singapore, the US, the UK, the Netherlands, Japan, Germany and the UAE are major sources of FDI for India.
During April-October, the sectors that attracted the maximum FDI include services, construction activities, power, computers and hardware, telecom and housing and real estate.
Wooing global investors by easing FDI rules, the RBI had said transfer of shares between Indians and non-residents will not require its permission in several key areas, including financial services.
