Foreign direct investment (FDI) in India plunged by about 56 per cent to $1.95 billion in March 2009.
However, the country managed to post a growth rate of 11 per cent in FDI in 2008-09, thanks to robust inflows in first six months of the fiscal.
FDI inflow in 2008-09 stood at $27.4 billion as against $24.5 billion in the year ago period, a senior government official said today.
"I think the negative trend in the foreign inflows may continue in the coming months," the official said.
The country has been witnessing steep fall in foreign investments since October 2008. The inflows in the first six months were $17.21 billion.
FDI in February 2009 dropped to $1.4 billion, almost one-fourth of the inflows witnessed in same month last year.
Changes in the FDI policy announced in February have created a lot of confusion among both domestic and foreign investors.
As per the Press Note 2, 3 and 4, the FDI can flow into sectors which are not allowed to foreign investments through a circuitous route.
