FDI falls 47% in May

Foreign direct investment (FDI) in the country declined by about 47% to $2.1 billion in May due to the global recession and the trend is likely to continue for some more months. The government had scaled down the FDI target by $5 billion from $35 billion last fiscal. Separately, the government also said there was no proposal to change the current foreign direct investment policy on retail trade. India currently does not allow FDI in retail trade, except for single brand products where up to 51% FDI is allowed.