FDI in services sector drops 62% during Apr-Oct 2013

 Foreign direct investment (FDI) inflows into the services sector declined by about 62 per cent year-on-year to $1.36 billion during April-October of the ongoing fiscal.

The services sector, which includes banking, insurance, outsourcing, R&D, courier and technology testing, had received FDI worth $3.6 billion during April-October 2012, an official in the Department of Industrial Policy and Promotion (DIPP) said.

In step with the drop in FDI in important sectors like services, overall foreign inflows in the country has come down to $12.6 billion during the seven months of the current fiscal. It was $14.78 billion in April-October 2012. The services sector contributes over 60 per cent to India’s GDP. In 2012-13, foreign investment in services fell to $4.83 billion from $5.21 billion in 2011-12. The other sectors where inflows have declined include power ($320 million) and metallurgical industries ($245 million).

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