Over 50% of FDI in first half of FY'11 went to Maharashtra, NCR

Over 50% of FDI in first half of FY'11 went to Maharashtra, NCR

Over 50% of FDI in first half of FY'11 went to Maharashtra, NCR

Maharashtra attracted the maximum foreign direct investment (FDI) of about USD 2.67 billion (Rs 12,275 crore) during April-September, 2010, accounting for 34 per cent of the total FDI in the country during the period.

Delhi's National Capital Region (NCR), including parts of Uttar Pradesh and Haryana, received USD 1.96 billion (Rs 8,961 crore) of FDI during the period.

NCR accounted for 20 per cent of the total FDI in the country. During the period, India attracted USD 11 billion of FDI, the data said.

According to experts, the good infrastructure of states like Maharashtra and Delhi made them more attractive FDI destinations than states with poor roads and power facilities.
"Infrastructure in these areas has improved considerably and that is making them attractive destinations for FDI in India," said Rakesh Joshi, an international trade expert at the Indian Institute of Foreign Trade.

Karnataka was the third-most preferred FDI destination in the country, attracting USD 1.04 billion during the period, followed by Andhra Pradesh (USD 491 million), Madhya Pradesh (USD 398 million) and Tamil Nadu (USD 331 million).

FDI flows into different states in India have increased steadily since the early 1990s, when the Indian economy was first opened up to foreign investment, Joshi said.

Less developed states like Rajasthan received USD 13 million of FDI during the period, while Orissa and Uttar Pradesh attracted USD 11 million and USD 80 million, respectively.
The sectors that attracted the maximum FDI include services, telecommunication, metallurgical industries, power, computer hardware and software and construction.

The government is making sustained efforts to make the FDI policy regime more attractive and investor-friendly. It is considering raising the ceiling on FDI in the sensitive multi-brand retail and defence sectors.

At USD 25.88 billion, foreign direct investment into the country in 2009-10 was 5 per cent lower than the USD 27.33 billion FDI seen in the previous fiscal.