Foreign direct investment (FDI) into the country declined by 9% to $6.51 billion during January-April 2011 over the same period last year, according to the industry ministry data.
In January-April 2010, the country received FDI worth $7.14 billion.
According to experts, the government should further streamline FDI policies and make the environment more investment-friendly to attract investments.
"To boost FDI into the country, the government needs to take strong policy action," an economist said.
The sectors that attracted FDI include services (financial and non-financial), telecommunications, housing and real estate, construction activities and power, the data said.
Mauritius, Singapore, the US, the UK, the Netherlands, Japan, Germany and the UAE are the major investors in India.
FDI inflows into India totalled $19.42 billion in 2010-11, down from $25.83 billion in 2009-10.
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.
Recently, relaxing FDI norms, the DIPP had allowed Indian companies to issue equity against the import of capital goods and liberalised the conditions for foreign investment for production and development of seeds.
