The situation in the country looks quite gloomy at the moment with the depletion of Foreign Direct Investments dipping to over 50per cent for the second consecutive month. The situation creates panic in average investor.

The Eurozone debt crisis and the global slowdown added to Dollar weakening have directly impacted the FDI flow into the country. In October the dip was at its lowest of over 50 per cent to $1.16 billion in October for the second consecutive month. The FDI in the multi-brand retailing is already in a worse political depression, with the opposition trying to shelf the proposal.

The country had received $2.33 billion overseas investment in the same month last year. In September, the inflows were at $1.76 billion, down by 16.5 per cent year-on-year. However, during the April-October period, FDI went up by 50.3 per cent to $20.8 billion, from $13.84 billion in the year-ago period as inflows were robust in the initial months, a senior government official said.

According to experts, uncertain economic conditions in the US and Europe are one of the major reasons for the declining FDI in India. Mauritius, Singapore, the US, the UK, the Netherlands, Japan, Germany and the UAE are major sources of FDI for India.