FDI up by 43 per cent in April to USD 3.12 bn

Following three months of consecutive decline, foreign direct investment (FDI) flows into India grew by about 43 per cent to USD 3.12 billion in April, 2011.

The country received USD 2.17 billion worth of FDI in April, 2010.

"The figure is showing a recovery in the global markets, especially in European economies," an official said. Mauritius, Singapore, the US, UK, Netherlands, Japan, Germany and the UAE are the major investors in India.

In April, the maximum investment came from Singapore (USD 1.17 billion), followed by Mauritius (USD 976 million), Japan (USD 235 million), France (USD 220) and Cyprus (USD 170 million).

During the month, the sectors that attracted the maximum FDI during the period include services (USD 658 million), construction activities (USD 311 million), power (USD 256 million), computers and hardware (USD 96 million), telecommunications (USD 46 million) and housing and real estate (USD 38 million).

In January, February and March, 2011, foreign investment inflows dipped by 48 per cent (USD 1.2 billion), 30 per cent (USD 1.04 billion) and 11 per cent (USD 1 billion), respectively, vis-a-vis

the corresponding periods in the previous year.

FDI declined by 25 per cent to USD 19.4 billion in 2010-11 from USD 25.83 billion in 2009-10, which was also lower than the USD 27.33 billion invested in the previous fiscal.

However, the Department of Industrial Policy and Promotion (DIPP) has initiated steps, including consolidation of all related rules and regulations into a single document, to boost FDI in the country.

Recently, relaxing FDI norms, the DIPP had allowed Indian companies to issue equity against the import of capital goods and liberalised the conditions for foreign investment for production and development of seeds.