FDI in services jumps 3-fold during April-June

New Delhi, Sept 19 (PTI) Foreign direct investment (FDI)
into India's services sector tripled to USD 2.19 billion (Rs
9,802 crore) during the first quarter of the current fiscal,
according to the industry ministry's data.
The financial and non-financial services sector had
attracted FDI worth USD 695 million (Rs 3,149 crore) during
the same period of 2010-11.
According to experts, uncertain economic conditions in
western markets are creating opportunities in emerging
economies like India.
"Foreign investors are looking at India as western
markets are reeling under debt crisis," an economist said.
Overall FDI inflows during April-June 2011-12 jumped by
133 per cent to USD 13.44 billion from USD 5.77 billion in the
same period of the previous fiscal.
The Commerce and Industry Ministry had said that it
appears that the recent trend of dip in FDI inflows have been
reversed in the current financial year.
Services sector contributes over 50 per cent to India's
economy.
Despite increase in FDI in services sector, drugs and
pharmaceutical segment attracted maximum investment worth USD
2.99 billion during the first quarter of the current fiscal.
Telecommunication was the third best sector which
attracted USD 1.21 billion investment, followed by power (USD
859 million), computer software and hardware (USD 703 million)
and automobile (USD 436 million).
During the period, the highest FDI of USD 4.52 billion
came from the Mauritius, followed by Singapore (USD 2.67
billion), the UK (USD 2.47 billion) and Germany (USD 1.25
billion).