FDI in service sector drops 54% to USD 2.18 bn in Apr-Feb

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FDI in service sector drops 54% to USD 2.18 bn in Apr-Feb
Foreign direct investment (FDI) in the services sector declined 54 per cent to USD 2.18 billion during April-February of 2013-14 from a year earlier.

Services such as banking, insurance, outsourcing, R&D, courier and technology testing had received USD 4.74 billion of FDI during April-February 2013, according to data from the Department of Industrial Policy and Promotion (DIPP).

According to experts, foreign investors will move ahead with their decisions once a new government takes over after the ongoing Lok Sabha elections.

Overall foreign inflows into the country declined to USD 20.76 billion during the first 11 months of 2013-14 from USD 20.89 billion in April-February 2013.

The services sector contributes over 60 per cent to India's gross domestic product. In 2012-13, foreign investment in services fell to USD 4.83 billion from USD 5.21 billion in 2011-12.

Other sectors where inflows have declined include construction, metallurgical industries and hotel and tourism.

A drop in foreign investment could affect the country's balance of payments situation and the rupee.

Read more about: fdi
Story first published: Monday, May 5, 2014, 9:20 [IST]
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