Despite the fact that uncertainty continues to loom over global economic outlook, yet India registered a 36 percent increase in foreign direct investment (FDI) inflow to $ 23.68 billion during the January-October period of 2011 as compared to FDI worth $ 17.36 billion during the same period in 2010. However, the FDI inflows in the financial year 2010-11 were at $ 19.42 billion, down from $ 25.83 billion in 2009-10.
As per the data released by ministry of commerce and industry, Financial and non- financial, telecom, housing and real estate, and construction and power remained the most lucrative sectors that attracted maximum investments. The nations from where major part of investments were routed into India were Mauritius, Singapore, the US, the UK, the Netherlands, Japan, Germany and the UAE.
In its bid to raise external debt, the government has gone on to further liberalize the FDI regime and allowed overseas investment in bee-keeping and share-pledging. Moreover, the government has also eased certain conditions for FDI in construction of old-age homes and educational institutions which will not be subject to the minimum and built-up area, capitalisation and lock-in period norms as applicable for the construction activities. But still more need to be done by the government to further streamline policies and make the environment more conducive to FDI.
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