India's services sector most favourite among foreign investors

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NEW DELHI, Sep 26 (PTI): India attracted USD 2.14 billion FDI in the services in the first four months of the current fiscal, the highest among all sectors.
Despite the economic downturn, the country managed to attract USD 3.47 billion foreign direct investment (FDI) in July, while it was USD 2.24 billion in the year ago month, according to official data.
India's total FDI inflow during April-July 2009 was USD 10.49 billion, down 15 per cent from USD 12.32 billion in the same period previous year, the data said.
According to an UNCTAD report, the FDI in India may erode sharply from the record USD 42 billion in 2008 with trans- national corporations (TNCs) going slow on expansion plans following the global financial meltdown.
The services sector, including financial and non-financial segment, attracted 20 per cent of the total foreign direct investment inflows in the April-July period.
It was followed by housing and real estate sectors that attracted USD 1.41 billion investments. The telecommunications sector attracted investments worth USD 993 million.
The highest FDI of USD 4.55 billion came from Mauritius followed by the US and Singapore in April-July 2009.
The government recently approved formation of an investment promotion firm 'Invest India', where it will partner the states and industry, to help attract foreign investors and provide them a hassle-free entry.