FDI plunges 48 per cent in January

• With economic recovery in the rich countries, especially European nations, remaining fragile, Foreign Direct Investment (FDI) inflows to India plunged by 48 per cent to $ 1.04 billion in January over the same period last year.
• Countries including Mauritius, Singapore, the U.S., the U.K., the Netherlands, Japan, Germany and UAE are the major investors in India.
• In January 2010, India attracted FDI worth $ 2.04 billion.
• During the ten month period (April-January 2010-11) of the current fiscal, FDI declined 25 per cent to $ 17 billion over the year ago period
• In view of declining foreign investment inflows, the Reserve Bank of India (RBI) is considering setting up a panel to find out the reasons for FDI slowdown and suggest ways to encourage it.
• The sectors that attracted FDI include services (financial and non-financial), telecommunications, housing and real estate, construction activities and power.
• As far as FII inflows are concerned, they too dipped in January, declining to $ 1.19 billion from $ 1.84 billion during the same period of January 2010.