Is per the Department of Industrial Policy & Promotion, in May 2009, India received $2.2 billion (approx Rs 10,615 crore) FDI as compared to $3.9 billion (approx Rs 18,817.5 crore) FDI received in May 2008 indicating a fall of 43 per cent.

In April 2009, FDI inflow had fallen by 38 per cent to $2.34 billion (approx Rs 111,290.5 crore) from $3.74 billion (approx Rs 18,045.5 crore) received a year ago.

As in the previous year, Mauritius continued to be the largest source of FDI.

Singapore and the USA are the other two prominent FDI-Origin destinations. Among the sectors, the Services sector attracted the largest share of foreign capital, followed by Computer Software and Hardware, Telecommunication, Housing and Real Estate.

According to the 'World Investment Prospects Survey 2009-2011' released by the United Nations Conference on Trade and Development (UNCTAD), India has slipped to third place in global FDI inflows, due to the economic meltdown. UNCTAD, is however, confident that India will remain among the top five attractive destinations for foreign investors during the next two years.

In 2008, India was second only to China in global FDI inflows. In 2009, the USA pushed India to the third place. The US could achieve this feat mostly because of the rise in investment by Chinese and Indian companies, who acquired several sick American firms.

FDI Clearances:

In July 2009, the Union Ministry of Finance on recommendations of FIPB approved 16 FDI proposals worth Rs 891.71 crore. The largest among them was of Teesta Urja's Rs 547.20 crore ex-facto proposal to regularise the allotment of equity shares on partly-paid basis. Another Rs 116 crore proposal of KVK Energy & Infrastructure to raise additional FDI from an existing investor by way of issue of Compulsorily Fully Convertible Debentures got a go ahead.

IL&FS Trust Company's Rs 108 crore proposal which will allow the trust to continue to hold investment in Multi Commodity Exchange of India was also given a green signal by the FIPB.

In all 13 proposals were reportedly deferred on recommendations of FIPB. It included proposals from Jindal Saw, NR Hytech Engineers, United Breweries, Dish TV India etc. Unitech Wireless' proposal to increase the foreign share holding to 74 per cent was also deferred along with the other proposals. However, the government is likely to give its nod to Unitech's proposal but on the condition that none of the staff who have worked in Telenor Pakistan, which is 100 per cent owned by the Telenor, are employed in India.

Indium IV Holdings and Benq India's proposal were reportedly rejected by the FIPB.