India's FDI sinks to 19% in February due to global slowdown

India received foreign direct investment (FDI) worth $ 1.79 billion in February, 2013 which is a decline of about 19 per cent when compared to the same period in the previous Fiscal. The probable cause for the dip is due to global economic slowdown.

The country had attracted $ 2.15 billion FDI in January 2013. During the April-February period of 2012-13, FDI inflows stood at $ 20.89 billion. Where as, in the same period of the previous fiscal, FDI inflows stood at $ 33.49 billion, which has declined 38 per cent.

Sectors which received large FDI inflows during the 11 months of the last fiscal include services ($ 4.74 billion), hotel and tourism ($ 3.21 billion), metallurgical ($ 1.39 billion), construction ($ 1.26 billion) and Pharmaceuticals ($ 1.11 billion).

India received maximum FDI from Mauritius ($ 8.97 billion), followed by Japan ($ 2.11 billion), Singapore ($ 1.98 billion), the Netherlands ($ 1.67 billion) and the UK ($ 1.06 billion).

The experts opined the there is still a lot to improve regarding business environment in the country.

Although the reforms in the last one year are welcomed, but more needs to be done in order to build foreign investors confidence.

In November 2012, India attracted FDI worth $ 1.05 billion, which was a two-year low. The inflows had aggregated to $ 36.50 billion in 2011- 12, as against $ 19.42 billion in 2010-11 and $ 25.83 billion in 2009-10.

India require about $ 1 trillion in the next 5 years to overhaul its infrastructure sector such as ports, airports and highways to boost growth. While the concerns are now raised and pressure had build on the country as the balance of payments and value of rupee will effect due to the decline in foreign investments.