India s FDI dropped by 38 in September to USD 2.91 billion

Foreign Direct Investment (FDI) into India dropped by 38% in September compared to same month last year to USD 2.91 billion. FDI inflow stood at USD 4.67 billion in September last year. During the April-September period of 2013-14 fiscal, cumulative FDI dropped by 11% to USD 11.37 billion, compared to USD 12.84 billion during the same period of previous financial year 2012-13.

In the first six months of last fiscal, the services sector had attracted USD 3.04 billion, telecom USD 43 million and metallurgical industries USD 685 million. The maximum FDI during the period came from Singapore, followed by Mauritius, the Netherlands, Germany and the US.

India has projected to require around USD 1 trillion FDI between 2012-13 and 2016-17, the 12th Five Year Plan period, to fund the infrastructure growth covering sectors such as ports, airports and highways. The government has also started exercise in allowing FDI in railways sector besides liberalising FDI norms for construction and housing sector. It has already relaxed FDI policy in 12 sectors, including telecom, tea and petroleum & natural gas. The aim is to boost FDI inflows in order to reduce current account deficit, fund hue infrastructure spend and support domestic currency.