FDI in Services Drops 54 Per Cent to 2.18 Billion Dollars - The New Indian Express

FDI in Services Drops 54 Per Cent to 2.18 Billion Dollars

Published: 05th May 2014 06:00 AM

Last Updated: 05th May 2014 01:01 AM

Foreign Direct Investments (FDI) in the services sector saw a decline of 54 per cent from April-February FY14 at $2.18 billion when compared to $4.74 billion received in athe same period last year; highlighting the steady decline into the sector over the years.

The services sector is said to account for around 60 per cent of the GDP (gross domestic product); one of the biggest contributors.

According to data from the Department of Industrial Policy and Promotion (DIPP), FDI declined to  $4.83 billion in Fy13 when compared to $5.21 billion recorded in Fy12. Banking, insurance, outsourcing, research and development, courier and technology among other sectors comprise the services sector.

Reports said that investments from foreign sources was down $20.6 billion in the first 11 months of Fy14. This is a marginal decline in overall foreign inflows when compared to the first 11 months of Fy13 where a total of $20.89 bn was recorded, it was reported.

There has been a lull in investment activities due to slowdown in economy as well as the ongoing Lok Sabha elections. Industry leaders and bodies have indicated that a stable government in place at the Centre could spruce up investment activity in the ongoing fiscal (Fy15).

Data from DIPP indicated that other sectors like construction, metallurgical industries, hotel and tourism also saw decline in foreign inflows. According to estimates, India would require close to $1 trillion to fund its infrastructure activities in the 12th Plan (2012-17).

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