Despite efforts by the Commerce & Industry Ministry, India’s Foreign Direct Investment (FDI) during April-February 2010-11 has declined by 25.6 per cent to USD 18.3 billion. During April-February 2009-10, the country’s FDI stood at USD 24.62 billion.
Commerce and Industry Minister Anand Sharma said that fresh investments particularly in services sector–computer (software and hardware), telecom, construction and real estate–have been received. The minister said the tie-up between the British-based company BP and Reliance would result in increased FDI inflows. BP is buying 30 per cent stake in its 23 out of 29 exploration blocks held by Reliance, for USD 7.2 billion, as per the deal announced in February.
The dip in FDI is a cause of worry for the government and has prompted the Finance Ministry, Ministry of Corporate Affairs and the Commerce and Industry ministry to look at process simplifications to make the government machinery more simple and industry friendly so as to attract FDI.
In February this year, India’s FDI registered its second consecutive decline dipping by about 30 per cent year-on-year to USD 1.2 billion in the backdrop of financial turmoil in Europe.
In February 2010, the country attracted FDI worth USD 1.7 billion.
Countries, including Mauritius, Singapore, the US, UK, Netherlands, Japan, Germany and UAE are the major investors in India.