Foreign direct investment (FDI) in India went up by 31% to $27.5 billion (Rs 1,35,000 crore) last year, notwithstanding uncertain economic environment globally.
FDI inflows in 2010 totalled $21 billion (Rs 1,05,000 crore).
The sectors that attracted maximum FDI last year include services (financial and non-financial), telecom, housing and real estate, and construction and power, according to the industry ministry's latest data.
Mauritius, Singapore, the US, the UK, the Netherlands, Japan, Germany and the UAE are the major investors in India.
Experts said, meanwhile, that the government should further streamline policies and make the environment more conducive to FDI.
"The government should allow 100% FDI in sectors like domestic airlines and insurance sector to boost inflows and generate employment," Ficci Secretary General Rajiv Kumar said.
During April-December, FDI moved up 51% to $24.18 billion (1,20,000 crore), from $16.03 billion (Rs 80,000 crore) in the same period of the previous year.
FDI inflows totalled $19.42 billion (Rs 95,000 crore) in 2010-11 financial year, down from $25.83 billion (Rs 1,30,000 crore) in 2009-10.
To boost FDI inflows, the government has liberalised the FDI regime, allowing overseas investment in bee-keeping and share-pledging for raising external debt. Besides, 100% foreign investment has been allowed in single-brand retail sector.
Besides, the conditions for FDI in construction of old- age homes and educational institutions have been eased.