India's services sector attracts $3.47 billion

Despite the economic downturn, the country managed to attract $3.47 billion foreign direct investment (FDI) in July, while it was $2.24 billion in the year ago month, according to official data.

India's total FDI inflow during April-July 2009 was $10.49 billion, down 15 per cent from $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 $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 $1.41 billion investments. The telecommunications sector attracted investments worth $993 million. The highest FDI of $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.