NCR attracts 2nd highest FDI

NCR accounted for 20 of the total FDI in the country. During the period,India attracted 11 billion of FDI,the data said.

Maharashtra attracted the maximum foreign direct investment FDI of about 2.67 billion Rs 12,275 crore during April-September,2010,accounting for 34 of the total FDI in the country during the period.

According to experts,the good infrastructure of states like Maharashtra and Delhi made them more attractive FDI destinations than states with poor roads and power facilities.

8220;Infrastructure in these areas has improved considerably and that is making them attractive destinations for FDI in India,8221; said Rakesh Joshi,an international trade expert at the Indian Institute of Foreign Trade.

Karnataka was the third-most preferred FDI destination in the country,attracting 1.04 billion during the period,followed by Andhra Pradesh 491 million,Madhya Pradesh 398 million and Tamil Nadu 331 million. FDI flows into different states in India have increased steadily since the early 1990s,when the Indian economy was first opened up to foreign investment,Joshi said.

Less developed states like Rajasthan received 13 million of FDI during the period,while Orissa and Uttar Pradesh attracted 11 million and 80 million,respectively.

The sectors that attracted the maximum FDI include services,telecommunication,metallurgical industries,power,computer hardware and software and construction.

The government is making sustained efforts to make the FDI policy regime more attractive and investor-friendly. It is considering raising the ceiling on FDI in the sensitive multi-brand retail and defence sectors.

At 25.88 billion,foreign direct investment into the country in 2009-10 was 5 lower than the 27.33 billion FDI seen in the previous fiscal.