Maharashtra and Delhi’s National Capital Region accounted for over 50 per cent of the foreign direct investment inflows into the country during April-December 2010-11, says industry ministry’s latest data.
Maharashtra attracted maximum foreign inflows at $5.24 billion (Rs 23,804 crore) and accounted for 35 per cent of the country’s total FDI during April-December this fiscal.
National Capital Region (NCR), including parts of Uttar Pradesh and Haryana, received $2.16 billion (Rs 9,846 crore) FDI during the first three quarters of the current financial year.
The NCR accounted for 19 per cent of the country’s total FDI. According to experts, the main reason for the maximum inflows in Maharashtra and NCR is substantial improvement in the infrastructure. “Infrastructure in these areas have improved considerably and that is making them attractive destination for FDI in India,” an economist said.
Karnataka attracted the third highest FDI inflows worth $ 1.12 million during the period, followed by Andhra Pradesh ($1.04 billion), Gujarat ($427 million) and Goa ($300 million).
Sectors, which attracted maximum FDI include services, telecommunication, metallurgical industries, power, computer hardware and software, and construction activities.
During the period under review, the highest FDI of $ 5.74 billion came from Mauritius followed by Singapore ($1.44 billion), Japan ($1.19 billion), the US ($1.05 billion) and the Netherlands ($1.01 billion).
Overall, FDI inflows dropped by 23 per cent to $16 billion during April-December 2010-11 against USD 20.86 billion in the year-ago period. In view of the declining foreign investment inflows, the Reserve Bank of India (RBI) is considering setting up a panel to find out reasons for the FDI slowdown and suggest ways to encourage it.