Foreign Direct Investment in India declined by about 33 per cent to $1.35 billion (Rs 7,124 crore) in December 2011, over $2.01 billion (Rs 9,094 crore) in the previous year, an official said.

However, cumulative inflows during April-December moved up 51 per cent to $24.18 billion from $16.03 billion, mainly due to higher FDI inflows during April-June quarter.

The cumulative figure has crossed $19.43 billion which came in the full 2010-11 fiscal. In April, May and June, the country received FDI worth $3.12 billion, $4.66 billion and $5.65 billion, respectively.

Analysts say that FDI will cross $30 billion in the current fiscal, which will have a positive impact on rupee in the foreign exchange market. The rupee had fallen 15 per cent last year due to FII selling pressure in the stock market and rising trade deficit.

The trend has reversed since the start of this year.

“Despite decline in December 2011, FDI will cross $30 billion...but government should take steps to boost investors confidence,” an economist said.

The sectors that have received large foreign inflows during the nine-month period this fiscal are: services sector ($4.57 billion), pharmaceuticals ($3.19 billion), telecom ($1.98 billion), construction ($1.60 billion), power ($1.44 billion) and metallurgical industries ($1.49 billion).

During the period, India received highest FDI from Mauritius ($8.24 billion), Singapore ($3.99 billion), Japan ($2.68 billion), UK ($2.57 billion), Germany ($1.39 billion), Netherlands ($1.07 billion) and Cyprus ($1.02 billion), the official added.

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