India received foreign direct investment (FDI) worth $1.79 billion in February 2013 —— a decline of about 19 per cent due to global economic slowdown. In February 2012, the country had received FDI worth $2.21 billion.
In January this year, the country had attracted $2.15 billion FDI.
During the April-February period of 2012-13, FDI has declined 38 per cent to $20.89 billion, an official in the Department of Industrial Policy and Promotion (DIPP) told PTI.
During the same period of the previous fiscal, FDI inflows stood at $33.49 billion.
Sectors which received large FDI inflows during the 11 months of the last fiscal include services ($4.74 billion), hotel and tourism ($3.21 billion), metallurgical ($1.39 billion), construction ($1.26 billion) and Pharmaceuticals ($1.11 billion), the official added.
India received maximum FDI from Mauritius ($8.97 billion), followed by Japan ($2.11 billion), Singapore ($1.98 billion), the Netherlands ($1.67 billion) and the UK ($1.06 billion).
“There is a need to further improve the business environment. Reforms in the last one year are welcome, but more needs to be done in order to build foreign investors confidence,” Head of Tax and expert on FDI with corporate law firm Amarchand & Mangaldas Krishan Malhotra said.
India would require around $1 trillion in the next five years to overhaul its infrastructure sector such as ports, airports and highways to boost growth.
Decline in foreign investments could put pressure on the country’s balance of payments and may also impact the value of the rupee.