FDI in services sector dips 23

According to experts,the global economic recovery is not strong,which is impacting foreign investments in India.

8220;FDI is showing weakness now. Global economic recovery is still fragile specially in European economies,8221; an economist said.

On the other hand,overall FDI inflows too dropped by 25 per cent to USD 17 billion during the 10 months of 2010-11,against USD 23 billion in the year ago period.

The services sector,despite the 23 per cent dip in FDI,topped the chart in attracting maximum investment.

Telecommunications segment,including radio paging and cellular mobile,was the second best sector that attracted USD 1.33 billion,followed by automobile sectorUSD 1.19 billion,housing and real estate USD 1.04 billion,power USD 1.03 billion,construction USD 1 billion metallurgical industries USD 1 billion during the period,the data said.

During the period,the highest FDI of USD 6.12 billion came from Mauritius followed by Singapore USD 1.5 billion,the US USD 1.09 billion,Japan USD 1.36 billion and the Netherlands USD 1.04 billion.

The government is making sustained efforts,including involving stakeholders in policy formation,to make the investment regime more attractive and investor friendly.

Last week to boost FDI inflows,the government provided greater flexibility to Indian firms to raise overseas capital and scrapped norms that required a foreign company to obtain its domestic JV partner8217;s approval for making investments in the same field outside the joint venture.