Foreign direct investment (FDI) inflows into the services sector declined by 3.5 per cent to $4.66 billion during the April-January period of the last fiscal,according to the department of industrial policy and promotion (DIPP).
The financial and non-financial services sector had attracted FDI worth $4.83 billion during the same period in the previous year. The global economic situation is still not healthy. Investors are hesitant to invest their money in the sector, an official said.
Overall FDI inflows during the April-January period of 2012-13 financial year declined by 39 per cent to $19.10 billion. In 2011-12,FDI in services rose to $5.21 billion from $3.29 billion in 2010-11.
Services sector contributes over 60 per cent to Indias GDP. The other sectors which have received FDI during April-January 2012-13 include hotel and tourism ($3.19 billion),metallurgy ($1.38 billion),construction ($1.2 billion) and drugs ($1 billion).