India's FDI inflows up 1.5 pc to $ 2.18 billion in January

India's FDI inflows up 1.5 pc to $ 2.18 billion in January

Foreign direct investment (FDI) into India grew by a meagre 1.5 per cent to USD 2.18 billion in January, according to the data by the Department of Industrial Policy and Promotion.

In January 2013, the FDI was at USD 2.15 billion.

However, for the April-January period, foreign investment inflows dipped 2 per cent to USD 18.74 billion from USD 19.1 billion during the corresponding period of the previous fiscal, it said.

During the 10-months of this financial year, the highest FDI came in services (USD 1.80 billion), followed by pharmaceuticals (USD 1.26 billion), automobiles (USD 1 billion) and construction development (USD 966 million).

Mauritius led inflows into India with USD 4.11 investment  of FDI during April-January, followed by Singapore (USD 3.67 billion), UK (USD 3.18 billion) and the Netherlands (USD 1.7 billion).

In December 2013, India received USD 1.1 billion of foreign inflows, unchanged from the level in the same month a year earlier.

The country needs foreign investment to help regain its growth momentum. India's economic growth slowed to a decade's low of 4.5 per cent in 2012-13.India is estimated to require about USD 1 trillion between 2012-13 and 2016-17, the

12th Five-Year Plan period, to fund infrastructure projects.

A decline in FDI would hurt the rupee, which depreciated to a record low of 68.85 against the US dollar on August 28 last year. Since then the local currency has rebounded and is hovering at 61-62 per dollar. 

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