FDI in services sector slides 7.5% to $1.22 bn in Apr-Sep
Foreign direct investment in the country's services sector dipped 7.5 per cent to $1.22 billion during the first half of the current financial year. The services sector, which includes banking, insurance, outsourcing, R&D, courier and technology testing, had received FDI worth $1.32 billion during April-
September 2013-14, the data by Department of Industrial Policy and Promotion shows.
The services sector contributes over 60 per cent to India's GDP. In 2013-14, foreign investment in the sector fell to $2.2 billion from $4.83 billion in 2012-13.
The government is taking several measures to boost foreign inflows, according to an official.
The bill to hike FDI cap in insurance sector to 49 per cent from the current level of 26 per cent is pending in the Rajya Sabha. The other sectors that have recorded decline in foreign investment during the first two quarters of this financial year include construction and metallurgical industries.
During April-September of this fiscal, foreign investments showed a growth of 15 per cent to $14.47 billion as compared to $12.59 in the same period last year. During the period, India received maximum FDI from Mauritius at $4.19 billion, followed by Singapore ($2.41 billion), the Netherlands ($1.97 billion), the US ($1.19 billion), Japan ($937 million) and UK ($842 million).