Snapping two months of declining trend, foreign direct investment, FDI in India increased 30.69 per cent to about 9,000 crore rupees in December 2010. India had attracted FDI worth 7,185 crore rupees in December 2009. However, during the nine month period April to December of the current fiscal, FDI declined 23.14 per cent over the year ago period. 

The main sectors that attracted FDI include services (financial and non-financial), telecommunications, housing and real estate, construction activities and power. Countries including Mauritius, Singapore, US, UK, Netherlands, Japan, Germany and UAE are the major investors in India.

In view of declining foreign investment inflows, the RBI is considering setting-up a panel to find out the reasons for FDI slowdown and suggest ways to encourage it. According to economists, investors are cautious as the global economic recovery is fragile and uneven, specially in Europe.

India, China and Brazil are the top three target countries for foreign direct investment until the end of 2012 with the United States, for years number one, now in fourth place, according to the UN trade and development agency UNCTAD.