FDI in October dips 40 per cent

• After rising in September, Foreign Direct Investment (FDI) inflows in the country dipped by about 40 per cent to $1.4 billion in October over the same period last year. In October 2009, FDI was $2.3 billion. During the first seven months of 2010-11, India received FDI inflows worth $12.40 billion, according to Commerce and Industry Ministry.
• The inflows during April-October this fiscal are also down by 29.7 per cent compared to $17.64 billion FDI rush witnessed in the comparable period of last year.
• The inflows remained low-key despite a recent World Bank study saying that the FDI flows into developing countries, including India, is expected to recover over the next couple of years and is projected to increase by 17 per cent in 2010.
• "Sluggish economic recovery in western countries is one of the main reasons for slowdown in FDI in India," an industry official said.
• The government is in the process of formulating new policies on FDI in defence sector and multi-brand retail.