India attracts USD 1 billion FDI in March.

It is reported that India attracted foreign direct investment of USD 1.21 billion in March, 2010 around 38% lower than that in the same month last year.

As per report the foreign direct investment in March 2009 was USD 1.95 billion. For the whole fiscal 2009-10 FDI fell to 25.89 billion from 27.30 billion in the previous fiscal 2008-09 adding that overseas investment lowered due to the impact of financial crisis.

India’s Foreign Direct Investment inflows dipped 5.16% to USD 25.89 billion in 2009-10, which analysts said was good given the global credit squeeze.

FDI inflows in 2008-09 was USD 27.30 billion.

An official said that in March, the inflows declined by 38% to USD 1.21 billion from USD 1.95 billion a year ago.

Mr D K Joshi principal economist of CRISIL said that "Looking at the global conditions, I would say these are fairly respectable numbers.”

FDI inflow into India crossed the USD 10 billion mark for the first time in 2006 and in the following year jumped to USD 23 billion, making it the second most attractive investment destination after China. However, the global financial crisis of 2008 strangled this growth.

Mr Rakesh Mohan Joshi International trade expert at the prestigious Indian Institute of Foreign Trade said that India was always considered as an attractive destination for foreign investments. He said that "In the context of the global situation, the figures are good adding that India needs to further upgrade its infrastructure and simplify procedures to attract more and more FDI.”

The major sectors which attracted FDI include services, telecommunication, housing and real estate, power and automobile industry.

India receives maximum FDI from countries like Mauritius, Singapore, the US and UK.

Source : Steelguru