FDI inflows dip 19% to $1.1 bn in December

Written by Press Trust of India | New Delhi | Updated: Feb 21 2013, 07:46am hrs
Falling for the second straight month, Indias foreign direct investment (FDI) inflows declined nearly 19% to $1.10 billion in December 2012 due to global economic uncertainties.

In December 2011, the country had attracted FDI worth $1.35 billion.

For the April-December period of 2012-13, the inflows have declined by about 42% to $16.94 billion, according to the data of the Department of Industrial Policy and Promotion (DIPP).

According to experts, the decline in inflows is largely due to uncertainties in the global economy. An official said liberalisation of the FDI policy in various sectors would help in boosting the inflows in the coming months.

Sectors that received large FDI inflows during the nine months of the current fiscal include services ($4.04 billion), hotel and tourism ($3.15 billion), metallurgical ($1.30 billion), construction ($1.08 billion) and automobile ($803 million).

India received maximum FDI from Mauritius ($7.45 billion), followed by Japan ($1.62 billion), Singapore ($1.63 billion), the Netherlands ($1.33 billion) and the UK ($622 million).

In November 2012, India attracted FDI worth $1.05 billion, which was a two-year low. 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.