India’s foreign direct investment (FDI) inflows in the services sector dipped 30 per cent to $2.16 billion (Rs 9,933 crore) during April-October this financial year, according to commerce ministry data.
The financial and non-financial services sector had attracted FDI of $3.12 billion (Rs 15,087 crore) during the same period last financial year. According to experts, the government should now look at opening sectors like banking and retail to attract more foreign inflows.
“This is not good news (that FDI is declining). Our services sector is attractive but due to lack of banking sector reforms and closure of retail sector for foreign investors, FDI is not taking up,” economist and Ficci's Director General Rajiv Kumar said.
Kumar said the government should make business environment more investor friendly to attract FDI.