There has been a substantial decline in foreign direct investments (FDI) in high-growth potential sectors like housing and real estate, construction activities and telecommunications in 2010-11, an industry body today said.
“India has the lowest FDI inflow in comparison to most BRICS nations,” ASSOCHAM Secretary General D S Rawat said in a release.
The country’s growth strategy is dependent predominantly on domestic enterprises and domestic demand as opposed to FDI and export demand, he added.
On the other hand, there was a marginal upswing in foreign equity inflows for services sector, computer software and hardware, automobiles, power, metallurgical industries, chemical, petroleum and natural gas, ASSOCHAM said.
Electrical equipment, including computer software and electronics, fuels (power and oil refinery), drugs and pharmaceuticals, food processing industry, cement and gypsum products got no FDI in the past four years, it said.
India attracted foreign equity inflows totalling USD 19.4 billion during 2010-11 compared to USD 25.9 billion a year earlier and USD 27.3 billion in 2008-09.
India’s FDI percentage share of gross domestic product moved up from 7.5 in 2006-07 to 8.8 in 2007-08 to 9.8 to 2008-09 to 13 in 2009-10, but fell to 12.2 in 2010-11. South Africa’s percentage share of GDP was 36.6 last year compared to Russia’s 28.7, Brazil’s 22.9 and China’s 9.9.
