India`s services sector most favourite among foreign investors

Last Updated: Friday, September 25, 2009 - 20:27

New Delhi: India attracted USD 2.14 billion
FDI in the services in the first four months of the current
fiscal, the highest among all sectors.

Despite the economic downturn, the country managed to
attract USD 3.47 billion foreign direct investment (FDI) in
July, while it was USD 2.24 billion in the year ago month,
according to official data.

India`s total FDI inflow during April-July 2009 was USD
10.49 billion, down 15 per cent from USD 12.32 billion in the
same period previous year, the data said.

According to an UNCTAD report, the FDI in India may erode
sharply from the record USD 42 billion in 2008 with
trans-national corporations (TNCs) going slow on expansion
plans following the global financial meltdown.

The services sector, including financial and
non-financial segment, attracted 20 per cent of the total
foreign direct investment inflows in the April-July period.

It was followed by housing and real estate sectors that
attracted USD 1.41 billion investments. The telecommunications
sector attracted investments worth USD 993 million.

The highest FDI of USD 4.55 billion came from Mauritius
followed by the US and Singapore in April-July 2009.

The government recently approved formation of an
investment promotion firm `Invest India`, where it will
partner the states and industry, to help attract foreign
investors and provide them a hassle-free entry.

Bureau Report

First Published: Friday, September 25, 2009 - 20:27

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