 "FDI in August dips 38% to $1.4 bn, lowest in last 8 mths")
FDI had touched a low of $1.10 billion in December last year.
In August 2012, the country had attracted foreign investment worth $2.26 billion.
Also Read
During the April-August period of 2013-14 fiscal, FDI has grown by a meagre 4% to $8.46 billion, from $8.16 billion in the first five months of 2012-13, a senior official in the Department of Industrial Policy and Promotion (DIPP) told PTI.
According to industry experts there is a need to improve business environment in the country.
"There is a need to further improve the business environment. Reforms in the recent past are welcome, but more needs to be done in order to build foreign investors confidence," Head of Tax and expert on FDI with corporate law firm Amarchand & Mangaldas Krishan Malhotra said.
The sectors that helped in registering the hike during the five months include services ($1.19 billion), pharma ($1.07 billion), automobile ($661 million) and construction ($592 million).
The maximum FDI during the period came from Singapore ($2.37 billion), followed by Mauritius ($2.13 billion), the Netherlands ($980 million), Germany ($529 million), and the US ($475 million).
The DIPP official said the recent steps announced by the government will help improve the investment climate in the country and push up FDI inflows.
"The government has also started exercise in allowing FDI in railways sector besides liberalising FDI norms for construction and housing sector. The aim is to boost FDI inflows," the official added.
It has already relaxed FDI policy in 12 sectors, including telecom, tea and petroleum & natural gas.