India received foreign direct investment (FDI) worth USD 21 billion (Rs 96,104 crore) in the
calender year 2010, a decline of 22 per cent over the year ago period, a latest industry ministry data said.
The country had attracted FDI valued at USD 27 billion (Rs 130,980 crore) in 2009.
According to experts, foreign investors are cautious due to the fragile global economic recovery.
"The global economic recovery is weak, especially in Europe...I think, this is affecting the FDI flow in India," an economist said, adding that procedural delays in the country are also affecting the inflows adversely.
In view of declining foreign investment inflows, the Reserve Bank of India (RBI), the country's apex bank, is considering to set up a panel to find out the reasons for FDI slowdown and suggest ways to encourage it.
During the April-December period of the current fiscal, FDI declined by 23 per cent to USD 16.03 billion from USD 20.86 billion in the same period last year.
The main sectors that attracted FDI include services (financial and non-financial), telecommunications, housing and real estate, construction activities and power, the data
said.
Countries, including Mauritius, Singapore, the US, UK, Netherlands, Japan, Germany and UAE are the major investors in India.
In 2009-10, India's FDI had declined to USD 25.88 billion from USD 27.33 billion in the previous financial year.