Services attract highest FDI at USD 3.12 bn in Apr-Oct 2009-10

The services sector continues to remain the favourite destination for foreign investors as it attracted USD 3.12 billion FDI in the first seven months of 2009-10

The services sector continues to remain the favourite destination for foreign investors as it attracted USD 3.12 billion FDI in the first seven months of 2009-10.

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Services, which contribute the largest chunk -to the country's gross domestic product (GDP), attracted 22 per cent of the total Foreign Direct Investment (FDI) inflows of USD 17.64 billion in the April-October period of the current fiscal, official data shows.

In 2008-09, the services sector, including financial and non-financial segments, attracted the maximum foreign direct investment worth USD 6.11 billion. "Cost competitiveness of skilled manpower in India is the major reason for this...in the coming time also this sector will attract maximum investments," international trade expert with Indian Institute of Foreign Trade (IIFT) R M Joshi said.

Telecommunications followed the services sector, attracting USD 2.10 billion FDI. Real estate and housing with USD 2.05 billion worth of inflows was the third best choice of the foreign investors.

The maximum FDI inflow into the country in the first seven months of financial year was from Mauritius at USD 7.55 billion. It was followed by the US and Singapore. Overall FDI during April-November declined to USD 19.38 billion from USD 19.79 in the same period last year.