New Delhi: With economic recovery in the rich countries remaining fragile, foreign direct investment (FDI) inflows to India dipped for the second consecutive month, falling by about 7% to $1.6 billion in November 2010 over the same period last year, reports PTI.
In November 2009, FDI stood at $1.72 billion.
During the first eight months of 20010-11, India received FDI worth $14.02 billion, a decline of 27.4% over the corresponding period of previous year, an official told PTI.
During April-November 2009-10, the foreign inflows stood at $19.32 billion.
The inflows remained low despite a recent World Bank study stating the FDI flows into developing countries, including India, is expected to recover over the next couple of years.
“The sluggish and fragile financial recovery in the US and Europe could be one of the reasons for slowdown in FDI in India,” the official said.
CRISIL’s principal economist DK Joshi said FDI inflows are “lumpy in nature” and keep fluctuating on monthly basis.
After rising in September 2010, FDI inflows in October 2010 dipped by about 40% to $1.4 billion from $2.3 billion in the same period last year.
The inflows in September 2010 were up by 40% from the same month last year.
However, the government is making efforts to attract more and more FDI into the country. It is considering liberalising FDI in defence and multi-brand retail sector.
The main sectors which attracted foreign direct investment include services (financial and non-financial), telecommunication, housing and real estate, construction activities and power.
Countries including Mauritius, Singapore, the US, UK, Netherlands, Japan, Germany and UAE are the major investors in India.
FDI for 2009-10 at $25.88 billion was also lower by 5% from $27.33 billion in the previous fiscal.
Washington: Global oil prices are all set to rise with increase in demand from India and China in the long term, reports PTI quoting a top Obama administration.
"Over the long term, it is safe to say that oil prices will rise, increasing demand of developing countries, particularly India and China, the transition to more challenging environments to find oil of the multinationals.
All those conspire to say that oil prices in the mid and long term future will be higher," energy secretary Steven Chu told the CNN in an interview telecast on Monday.
The energy secretary said the United States should prepare for such a scenario and take steps to use the oil as efficiently as possible, while simultaneously ensuring transition from oil to alternative energy resources.
Electrification of vehicles is one of such examples, he said.
The fossil fuel that we use today is finite, and although we will have decades of transition period, one wants to look to a future where alternative energies, renewable energies, are going to be a major part of our energy supply, Mr Chu said.
The alternative energy, he observed, is going to grow in the coming years.
"But it's really what we want the future of our energy sources to be," he added.
Mr Chu hopes that electric cars, in the near term, would be more than niche products.
"By near term, I mean three, four, five years. Certainly the battery technology has to improve, but on the other hand, I see a lot of great ideas in the development of new batteries and companies like Nissan and GM. Others are really betting that this battery technology will improve greatly," he said.
"The electric vehicles they are introducing today are great, but, in the coming years, we are going to see even better ones," Mr Chu added.