Foreign direct investment (FDI) in India is estimated to have dipped by over 55 per cent to $2 billion in March from $4.44 billion a year ago in the face of the global credit crunch.
Though the official figures have been released up to January, FDI inflows declined in February as well, an official said. Inflows in February had dropped by 73 per cent year-on-year to $1.49 billion, he said.
Thanks to robust trends in the first six months, total FDI in 2008-09 is estimated to have crossed $27 billion, against $24.5 billion in 2007-08.
Rating agency CRISIL Principal Economist D K Joshi said the current year would be difficult in the wake of the global economic downturn.
"Given the poor global economic scenario, the figures are not too discouraging but the year 2009-10 will be more challenging," Joshi said. India had scaled down the FDI target by $5 billion from $35 billion for the last fiscal. Cumulative FDI from April 2000 to March 2009 stands close to about $90 billion.