Foreign direct investment (FDI) inflows into the services sector declined by about 14 per cent to $3.63 billion during the April-November period this fiscal.
The financial and non-financial services sector had attracted FDI worth $4.22 billion during the same period last year, according to the Industry Ministry data.
'Global economic crisis is impacting the FDI inflows in the sector,' an official said.
As far as overall FDI inflows are concerned, they declined to $15.84 billion during the first eight months of the current financial year, from $27.92 billion in the year-ago period.
In 2011-12, foreign investment in the services sector, which contributes over 50 per cent to India's GDP, rose to $5.21 billion from $3.29 billion in 2010-11.
The other sectors which have received FDI during April- November, 2012-13 include hotel and tourism ($3.13 billion), metallurgy ($1.26 billion), construction ($1.01 million) and automobile ($760 million).
India received maximum FDI from Mauritius ($7.2 billion), Japan ($1.56 billion), Singapore ($1.5 billion) the Netherlands ($1.09 billion) and the UK ($615 million), the Department of Industrial Policy & Promotion (DIPP) data showed.
The government is making sustained efforts, including involving stakeholders in policy formation and to make the investment regime more attractive and investor friendly, the official said.
It has already allowed FDI in multi-brand retail sector besides hiking the cap to 100 per cent in the single brand retailing.
Foreign investments are considered crucial for India, which needs around $ 1 trillion in the next five years to overhaul its infrastructure sector such as ports, airports and highways to boost growth. Decline in foreign investments could affect the country's balance of payments (BoP) situation and also impact the rupee.
FIIS HIKE EXPOSURE IN 29 SENSEX FIRMS IN Q3
Signalling their positive outlook on Indian stocks, foreign funds increased their exposure to 29 Sensex companies, including HDFC, Mahindra & Mahindra and Maruti Suzuki India, in the third quarter ended December, 2012.
Foreign Institutional Investors (FII), a major participant in Indian stock markets, have increased their shareholding in 29 companies of the 30-constituent Sensex in the October- December quarter.
Foreign funds, however, reduced their stake in Hero MotoCorp during December quarter of the current fiscal in comparison to the preceding (July-September) quarter.
Market analysts said the recent reforms initiatives undertaken by the government to boost economic growth and investor sentiment have infused much-need confidence in FIIs.
‘Reforms process initiated by the government last year fuelled a stupendous rally in the stock market. FIIs are investing in India and are of the opinion that the economy is going to reverse for good,’ Ashika Stock Brokers Head (Research) Paras Bothra said.
During the quarter, the largest increase in FII holding was recorded by housing loan major HDFC. FII stake in HDFC rose from 68.72 per cent in July-September quarter to 73.17 per cent in the three-month quarter ended December 31, 2012.
Overseas holding in Mahindra & Mahindra increased by 2.86 per cent from 30 per cent at the end of September quarter to 32.86 per cent in December quarter.
Auto major Maruti Suzuki saw foreign fund holdings increase to 23.13 per cent in December quarter from 20.45 per cent in the second quarter ended September.
FIIs also hiked their stake in NTPC, Larsen & Toubro, Wipro among others. In contrast, the foreign holding in Hero MotoCorp reduced to 31.99 per cent from 32.34 per cent in September quarter.
The financial and non-financial services sector had attracted FDI worth $4.22 billion during the same period last year, according to the Industry Ministry data.
'Global economic crisis is impacting the FDI inflows in the sector,' an official said.
As far as overall FDI inflows are concerned, they declined to $15.84 billion during the first eight months of the current financial year, from $27.92 billion in the year-ago period.
In 2011-12, foreign investment in the services sector, which contributes over 50 per cent to India's GDP, rose to $5.21 billion from $3.29 billion in 2010-11.
The other sectors which have received FDI during April- November, 2012-13 include hotel and tourism ($3.13 billion), metallurgy ($1.26 billion), construction ($1.01 million) and automobile ($760 million).
India received maximum FDI from Mauritius ($7.2 billion), Japan ($1.56 billion), Singapore ($1.5 billion) the Netherlands ($1.09 billion) and the UK ($615 million), the Department of Industrial Policy & Promotion (DIPP) data showed.
The government is making sustained efforts, including involving stakeholders in policy formation and to make the investment regime more attractive and investor friendly, the official said.
It has already allowed FDI in multi-brand retail sector besides hiking the cap to 100 per cent in the single brand retailing.
Foreign investments are considered crucial for India, which needs around $ 1 trillion in the next five years to overhaul its infrastructure sector such as ports, airports and highways to boost growth. Decline in foreign investments could affect the country's balance of payments (BoP) situation and also impact the rupee.
FIIS HIKE EXPOSURE IN 29 SENSEX FIRMS IN Q3
Signalling their positive outlook on Indian stocks, foreign funds increased their exposure to 29 Sensex companies, including HDFC, Mahindra & Mahindra and Maruti Suzuki India, in the third quarter ended December, 2012.
Foreign Institutional Investors (FII), a major participant in Indian stock markets, have increased their shareholding in 29 companies of the 30-constituent Sensex in the October- December quarter.
Foreign funds, however, reduced their stake in Hero MotoCorp during December quarter of the current fiscal in comparison to the preceding (July-September) quarter.
Market analysts said the recent reforms initiatives undertaken by the government to boost economic growth and investor sentiment have infused much-need confidence in FIIs.
‘Reforms process initiated by the government last year fuelled a stupendous rally in the stock market. FIIs are investing in India and are of the opinion that the economy is going to reverse for good,’ Ashika Stock Brokers Head (Research) Paras Bothra said.
During the quarter, the largest increase in FII holding was recorded by housing loan major HDFC. FII stake in HDFC rose from 68.72 per cent in July-September quarter to 73.17 per cent in the three-month quarter ended December 31, 2012.
Overseas holding in Mahindra & Mahindra increased by 2.86 per cent from 30 per cent at the end of September quarter to 32.86 per cent in December quarter.
Auto major Maruti Suzuki saw foreign fund holdings increase to 23.13 per cent in December quarter from 20.45 per cent in the second quarter ended September.
FIIs also hiked their stake in NTPC, Larsen & Toubro, Wipro among others. In contrast, the foreign holding in Hero MotoCorp reduced to 31.99 per cent from 32.34 per cent in September quarter.