India's Foreign Direct Investment (FDI) during April-February 2010-11 may have
declined 25.6 per cent to $18.3 billion, but the government is hopeful that some of the
big ticket deals like that of
BP-Reliance Industries would reverse the trend.
During April-February 2009-10, the country's FDI stood at $24.62 billion.
"There has been a shortfall (in FDI) when we compare it with the last financial year. There are quite a few investments that have been received," Commerce and Industry Minister Anand Sharma said in the national capital on Tuesday.
However, he said, fresh investments particularly in services sector - computer (software and hardware), telecom, construction and real estate - have been received.
The tie-up between British-based BP and RIL would result in increased FDI inflows, he added. Under the deal agreement, BP is buying 30 per cent stake in RIL's 23 of 29 exploration blocks for $7.2 billion.
Sharma also made mentions about deals such as Vodafone and Essar.
"These are indicators of continuing investor's confidence in India and are likely to add to the FDI portfolio this year substantially," he said.
In February this year, India's FDI registered its second consecutive decline dipping by about 30 per cent year-on-year to $1.2 billion in the backdrop of financial turmoil in Europe.
In February 2010, the country attracted FDI worth $1.7 billion. Countries, including Mauritius, Singapore, the US, UK, Netherlands, Japan, Germany and UAE are the major investors in India.
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