While inflows registered an over 18-fold rise in the power sector, the inflows are yet to touch $1 billion and were at $967 million in 2007-08.
It was one of the sectors which was late in attracting attention of foreign investors, thanks to the lack of clarity in policy both at the Central and state levels.
"FDI is a means to supplement domestic investment for achieving higher level of economic development and providing opportunities for technological upgradation as well as access to global managerial skills and practices," Commerce and Industry Minister Kamal Nath said.
The petroleum and natural gas sector witnessed FDI inflows of $113 million in 2004-05, which plunged to a mere $14 million in the succeeding fiscal.
But the sector gradually emerged as one of the preferred destinations, with inflows increasing a whopping 100-fold to touch $1.42 billion in 2007-08.