Foreign investment flow into the country jumped 11 percent last year over that in the previous fiscal.
However, the financial crisis that gripped the global economy in the second half of last fiscal has hit the investment flow worldwide.
The Indian economy, which also took a huge hit in the wake of the global crisis, is now picking up growth momentum, restoring confidence in investors, Sharma told reporters.
The country's gross domestic product (GDP) expanded 7.9 percent in the second quarter this fiscal, up from 6.1 percent in the first quarter.
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