FDI inflows dips by 49 p.c. in July

Mumbai: Reflecting fragile recovery in world’s major economies, foreign direct investment into India dipped for the second consecutive month, by 49 per cent to $ 1.78 billion in July.

The FDI inflows in July 2009 were $ 3.51 billion.

Contrary to smart recovery in the domestic economy and a rebound in exports, overseas investment show a slackening trend in the current fiscal, an official told PTI.

For the April-July period of 2010-11, FDI inflows declined by 27 per cent to $ 7.59 billion compared to $ 10.53 billion in the same period last year, the official said.

According to experts, weak global economic recovery is one of the reasons for declining FDI in India.