FDI in India slumps 38 percent in April-October

December 16th, 2010 - 6:01 pm ICT by IANS  

New Delhi, Dec 16 (IANS) Foreign Direct Investment (FDI) in India declined 37.84 percent to $12.40 billion in April-October this year from $19.95 billion in the corresponding period last year, according to official data released Thursday. Total FDI during January-October 2010 reached $17.37 billion, the Ministry of Commerce and Industry said in a statement.

India received $25.89 billion foreign direct investment in 2009-10 and targets $33 billion FDI in the current fiscal. However, the target is unlikely to be met considering the first seven months’ data.

The main reason behind the lacklustre inflow of foreign equity investment in India is the continued concerns over opening of multi-brand retail and insurance sector.

The government has decided to commence stakeholder discussions on various important issues under FDI policy, the statement said.

The Department of Industrial Policy and Promotion has issued five discussion papers on various aspects of FDI policy. It includes FDI in defence sector, FDI in multi-brand retail trading, approval of foreignechnical collaborations in case of existing venturesie-ups in India, issue of shares for considerations other than cash and FDI in Limited Liability Partnerships.

“The consultation process has been completed in all cases,” it said.

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