New Delhi: Foreign direct investment (FDI) in the country’s services sector has reported a decline of 22 percent to USD 3.27 billion (Rs 14,958 crore) during the April-February last fiscal, according to the industry data.

The services sector (financial and non-financial services) had attracted FDI worth USD 4.18 billion (Rs 20,015 crore) during April-February, 2009—10.

According to economists, sovereign debt problem in Europe are making players cautious of undertaking overseas investments.

Global economic situation is also yet to fully recover and is impacting FDI inflows into the country, an official said.

The services sector, despite the 22 per cent dip in FDI, topped the chart in attracting maximum investment.

Telecommunications segment, including radio paging and cellular mobile, was the second best sector attracting investments at USD 1.41 billion, followed by automobile (USD 1.32 billion ), power (USD 1.23 billion , housing and real estate (USD 1.10 billion) and metallurgical industries (USD 1 billion) during the period.

Country-wise, the highest FDI of USD 6.63 came from Mauritius followed by Singapore (USD 1.64 billion), Japan (USD 1.52 billion), Netherlands (USD 1.13 billion) and the US (USD 1.12 billion).

Overall FDI inflows into the country dropped by 25 per cent to USD 18.35 billion during April-February 2010-11, against USD 24.62 billion in the year ago period.

 

(Agencies)