FDI dips about 25% in first 11 months of 2010-11

NEW DELHI: India's Foreign Direct Investment (FDI) during April-February 2010-11 may have declined by 25.6 per cent to USD 18.3 billion, but the government is hopeful that some of the big ticket deals like that of BP-Reliance would reverse the trend.

During April-February 2009-10, the country's FDI stood at USD 24.62 billion.

"There has been a shortfall (in FDI) when we compare it with the last fiscal. There are quite a few investments that have been received," Commerce and Industry Minister Anand Sharma said here.

However, he said, fresh investments particularly in services sector--computer (software and hardware), telecom, construction and real estate--have been received,"

The minister said the tie-up between the British-based company BP and Reliance would result in increased FDI inflows.

BP is buying 30 per cent stake in its 23 out of 29 exploration blocks held by Reliance, for USD 7.2 billion, as per the deal announced in February.

Sharma also made mentions about deals such as Vodafone and Essar.

"These are indicators of continuing investor's confidence in India and are likely to add to the FDI portfolio this year substantially," he said.

In February this year, India's FDI registered its second consecutive decline dipping by about 30 per cent year-on-year to USD 1.2 billion in the backdrop of financial turmoil in Europe.

In February 2010, the country attracted FDI worth USD 1.7 billion.

Countries, including Mauritius, Singapore, the US, UK, Netherlands, Japan, Germany and UAE are the major investors in India.