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.