For the April-November period the FDI inflows have declined by about 31% to $15.84 billion from $22.83 billion in the year-ago period
In November 2011, the country had attracted FDI worth $2.53 billion.
For the April-November of FY13 the inflows have declined by about 31% to $15.84 billion from $22.83 billion in the year-ago period, a senior official in the Department of Industrial Policy and Promotion (DIPP) told PTI.
According to experts, problems in the global economic situation are the main reasons for decline in the inflows.
“The global economic slowdown and lack of political consensus on FDI related matters are the reasons for decline,” said Krishan Malhotra, Head of Tax and expert on FDI with corporate law firm Amarchand & Mangaldas.
Sectors which received large FDI inflows during the eight months of the current fiscal include services ($3.63 billion), hotel and tourism ($3.13 billion), metallurgical ($1.26 billion), construction ($1.01 billion) and automobile ($760 million), the official added.
The previous low was recorded in January 2011 when the FDI inflows slipped to $1.04 billion.
The inflows had aggregated to $36.50 billion in 2011-12 against $19.42 billion in 2010-11 and $25.83 billion in 2009-10.
Foreign investments are important for
Decline in foreign investments will put pressure on the country’s balance of payments and could also impact the rupee.
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