Foreign direct investment (FDI) inflows into the services sector in
India went up by 62% during April-January period 2011-12 on account of
unfavourable economic conditions of the western markets.
The financial and nonfinancial services sector attracted FDI
worth $4.83 billion during the 10-month period of 2011-12 as compared to
$2.98 billion in the April-January period of 2010-11. The trend
reflected confidence in India's growth story. It was observed that
though the economic growth in India itself declined in 2011-12 to 6.9%,
the economy was among the best performing in the world.
Despite taxation and policy issues, the country enjoys the
investor confidence as is evident from a 53 per cent increase in total
FDI inflows to $26.19 billion during the 10-month period (April-January
2011-12). The sectors that attracted sizeable FDI inflows include drugs
and pharmaceutical ($3.20 billion), construction ($2.23 billion),
telecommunications ($1.99 billion) and power ($1.56 billion).
The highest FDI of $8.91 billion came from the Mauritius, followed by Singapore ($4.30 billion) and Japan ($2.75 million).
