India's FDI inflows up 12% at $2 billion in February

Foreign direct investment into India grew for the second consecutive month in February this year to USD 2.01 billion, up 12.29%.

In February 2013, the FDI was at USD 1.79 billion according to the data by the Department of Industrial Policy and Promotion.

However, for the April-February period of last fiscal, FDI inflows dipped 0.6 per cent to USD 20.76 billion, from USD 20.89 billion during the first 11 months of 2012-13.

The highest FDI came in services (USD 2.18 billion), followed by automobiles (USD 1.28 billion), pharmaceuticals (USD 1.27 billion) and construction development (USD 1.05 billion) in the 11 months of 2013-14.

Mauritius led the inflows into India with USD 4.48 billion, followed by Singapore (USD 3.91 billion), UK (USD 3.21 billion) and the Netherlands (USD 2.20 billion).

In January 2014, FDI had increased 1.5 per cent at USD 2.18 billion.

The country needs foreign investment to help regain its growth momentum. India's economic growth slowed to a decade's low of 4.5 per cent in 2012-13.

India is estimated to require about USD 1 trillion between 2012-13 and 2016-17, the 12th Five-Year Plan period, to fund infrastructure projects.

A decline in FDI would hurt the rupee, which depreciated to a record low of 68.85 against the US dollar on August 28 last year. Since then the local currency has rebounded and is hovering at 61 per dollar.