Foreign direct investment (FDI) in the country declined by about 45 per cent to $1.41 billion in June this year, an official said.
The FDI inflows in June 2009 were $2.58 billion.
The sectors which attracted foreign investment, include services, telecommunication, construction activities and computer software and hardware, the official added.
Crisil Chief Economist D K Joshi said that there was no specific reason for this decline as the foreign inflows fluctuates every month.
Foreign investment in May 2010 was at $2.2 billion.
"In the coming months, the inflows are likely to be in healthy state...There could be some volatility given the global scenario, particularly the European events," Joshi said.
Meanwhile, Parliament was today informed that FDI during the first quarter of 2010-11 was at $5.80 billion. During April-June 2009-10, FDI inflows were $7.01 billion.
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The government has been taking measures to streamline the procedures for foreign investors.
"The government is making sustained efforts to make the FDI policy regime increasingly attractive and investor friendly, with a view to attract investments from all major investing countries," Minister of State for Commerce and Industry Jyotiraditya Scindia said in a written reply to the Rajya Sabha.
The FDI for 2009-10 at $25.88 billion was lower by five per cent from $27.33 billion in the previous fiscal.