Maharashtra and the National Capital Region accounted for over 50 per cent of foreign direct investment inflows into the country during the first half of 2010-11, says the latest Industry Ministry data.
Delhi's National Capital Region (NCR), including parts of Uttar Pradesh and Haryana, received $1.96 billion (Rs 8,961 crore) of FDI during the period. NCR accounted for 20 per cent of the total FDI in the country.
During the period, India attracted $11 billion of FDI, the data said. According to experts, the good infrastructure of states like Maharashtra and Delhi made them more attractive FDI destinations than states with poor roads and power facilities.
"Infrastructure in these areas has improved considerably and that is making them attractive destinations for FDI in India," said Rakesh Joshi, an international trade expert at the Indian Institute of Foreign Trade.
Karnataka was the third-most preferred FDI destination in the country, attracting USD 1.04 billion during the period, followed by Andhra Pradesh ($ 491 million), Madhya Pradesh ($ 398 million) and Tamil Nadu ($ 331 million).
FDI flows into different states in India have increased steadily since the early 1990s, when the Indian economy was first opened up to foreign investment, Joshi said.
Less developed states like Rajasthan received $ 13 million of FDI during the period, while Orissa and Uttar Pradesh attracted $ 11 million and $ 80 million, respectively.
The sectors that attracted the maximum FDI include services, telecommunication, metallurgical industries, power, computer hardware and software and construction.
The government is making sustained efforts to make the FDI policy regime more attractive and investor-friendly. It is considering raising the ceiling on FDI in the sensitive multi-brand retail and defence sectors.
At $ 25.88 billion, foreign direct investment into the country in 2009-10 was 5 per cent lower than the $ 27.33 billion FDI seen in the previous fiscal.
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