Following three months of consecutive decline, foreign direct investment (FDI) flows into India grew by about 43 per cent to $3.12 billion in April 2011 against $2.17 billion 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 ($1.17 billion), followed by Mauritius ($976 million), Japan ($235 million), France ($220) and Cyprus ($170 million).

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

In January, February and March 2011, foreign investment inflows dipped by 48 per cent ($1.2 billion), 30 per cent ($1.04 billion) and 11 per cent ($1 billion), respectively, vis-a-vis the corresponding period in the previous year.

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

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