FDI dips 32% in January-March to $3.39 bn

NEW DELHI: India received foreign direct investment (FDI) worth USD 3.39 billion during January-March, 2011, a decline of 32 per cent vis-a-vis the same period last year, according to the latest data from the industry ministry.

In January-March, 2010, the country received FDI worth USD 4.96 billion.

According to experts, the government should further streamline FDI policies and make the environment more investment-friendly to attract foreign investment.

"To attract more and more FDI into the country, the government needs to take strong policy action," CRISIL Principal Economist D K Joshi said.

The sectors that attracted FDI include services (financial and non-financial), telecommunications, housing and real estate, construction activities and power, the data said.

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

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

To attract more foreign direct investment, the Department of Industrial Policy and Promotion (DIPP) is taking steps like permitting the issuance of equity to overseas firms against imported capital goods and machinery.