Following three months of consecutive decline, foreign direct investment (FDI) flows into India grew by about 43% to $3.12 billion in April 2011.
The country received $2.17 billion worth of FDI in April 2010.
"The figure is showing a recovery in the global markets, especially in European economies," an official said.
Mauritius, Singapore, the US, the UK, the Netherlands, Japan, Germany and the UAE are the major investors in India.
In April, the maximum investment came from Singapore ($1.17 billion), followed by Mauritius ($976 million), Japan ($235 million), France ($220 million), and Cyprus ($170 million).
During the month, the sectors that attracted the maximum FDI include services ($658 million), construction activities ($311 million), power ($256 million), computers and hardware ($96 million), telecommunications ($46 million) and housing and real estate ($38 million).
In January, February and March 2011, foreign investment inflows dipped by 48% ($1.2 billion), 30% ($1.04 billion) and 11% ($1 billion), respectively, vis-a-vis the corresponding periods in the previous year.
FDI declined by 25% to $19.4 billion in 2010-11 from $25.83 billion in 2009-10, which was also lower than the $27.33 billion invested in the previous fiscal.
However, the Department of Industrial Policy and Promotion (DIPP) has initiated steps, including consolidation of all related rules and regulations into a single document, to boost FDI in the country.