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Power, services, real estate emerge FDI favourites

With India allowing FDI up to 100 per cent in many sectors, power, petroleum and natural gas, services, construction and real estate have emerged as the preferred destinations for foreign investors, who have pumped in $20.8 billion in these areas in the last four years. Between 2004-05 and 2007-08, FDI in services leapfrogged to $6.61 billion from $444 million, an official statement said here today. The real estate sector which was thrown open in 2004-05 saw the FDI picking up slowly in the initial two years, but grew substantially in 2007-08 to $2.17 billion.
While inflows registered an over 18-fold rise in the power sector, the inflows are yet to touch $1 billion and were at $967 million in 2007-08.
It was one of the sectors which was late in attracting attention of foreign investors, thanks to the lack of clarity in policy both at the Central and state levels.
"FDI is a means to supplement domestic investment for achieving higher level of economic development and providing opportunities for technological upgradation as well as access to global managerial skills and practices," Commerce and Industry Minister Kamal Nath said. The petroleum and natural gas sector witnessed FDI inflows of $113 million in 2004-05, which plunged to a mere $14 million in the succeeding fiscal.
But the sector gradually emerged as one of the preferred destinations, with inflows increasing a whopping 100-fold to touch $1.42 billion in 2007-08.

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