In what could be termed as a matter of concern, Foreign Direct Investment (FDI) declined sharply by 37.84 per cent to $12.40 billion during April-October this year as compared to $19.95 billion in the corresponding period last year.
According to official data released by the Commerce Ministry, total FDI during January-October 2010 reached $17.37 billion, something that is being termed as a matter of concern.
However, experts believe that this could give a push to the efforts by the Government to open up some sensitive sectors for FDI particularly the multi-brand retail and defence that has been hanging fire for quite some time due to political opposition.
India received $25.89 billion foreign direct investment in 2009-10 and has set a target of $33 billion FDI in the current fiscal.
However, the target is unlikely to be met considering the growth in the first seven months of the fiscal. Officials in the Department of Industrial Policy and Promotion are of the view that continued delay in deciding on policy issues pertaining to allowing FDI in various sectors, including insurance, is one of the major factors for foreign investors being choosy about making huge investments in India.
The government has decided to commence stakeholder discussions on various important issues under FDI policy, a DIPP statement said. The Department has issued five discussion papers on various aspects of FDI policy.
