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For India to maintain its momentum of GDP growth, it is vital to ensure that therobustness of its FDI inflows is also maintained. FDI inflows rose to US$24.19 billionduring April-December 2011, an increase of 50.8 per cent compared with the correspondingperiod of the previous year.Policy flip-flops, combined with global risk aversion, are prompting foreign companiesto increasingly repatriate their investments out of India during the last three yearsended December 2011 – the figure that was just a few million dollars between 2000 and2008 jumped to US$3.1 billion in 2009 and further to US$10.7 billion in 2011, accordingto Nomura, a global financial power house. Although total FDI flows are still in the positiveterritory, estimated at about US$20 billion for the year 2011-12, increasing FDI debtcould turn out to be, among other issues, another drag on the strength of the rupee.2. FDI projectsIndia attracts a variety of investments from all regions of the world, but more than half(51 per cent) from the United States, Germany, the United Kingdom and France. Thetotal value of FDI was US$58,261 million in the year 2011. India is the fourth destinationcountry in terms of projects, behind the United States (first), China (second) and theUnited Kingdom (third). However, in terms of FDI value, India is the third destinationbehind China (first) and Brazil (second). FDI projects increased by 20 per cent in Indiain 2011, attracting 932 projects, which created an estimated 255,416 jobs.Ernst & Young Consulting conducted a 2012 India Attractiveness Survey, which observedthat regardless of present economic crisis, the strong increase in the number of FDIprojects in India is a clear indication that global investors view the country as aneffective investment destination. More than half of the respondents remained convincedabout India’s long-term prospects and planned to strengthen their operations in thecountry, and more than two-thirds of those interested in India were planning to implementprojects in the short term. The Survey report held that manufacturing is likely to play aleading role in India’s future growth trajectory, as the country is rapidly emerging as amanufacturing location for many foreign corporations.India’s FDI activity is specialized on large industrial and back-office operations. In2011, the country received 288 large-scale manufacturing projects, creating an estimated142,235 new jobs, mostly in the automotive, industrial equipment and metals industries.India also received 238 large back-office and business process outsourcing (BPO)projects creating 30,269 new jobs, mainly in the information technology (IT) servicesindustry.3. TechnologyThe technology sector in India has a major impact on the Indian economy. The industryhas grown from US$4 billion in 1998 to more than US$80 billion in 2011, employingdirectly and indirectly more than 10 million people. Riding on the services outsourcingway, domestic and international companies have leveraged India’s value proposition toenhance their competitiveness in the global market.The technology sector in India received US$6.2 billion through FDI in 2011. Thisinvestment has created 153 projects with an estimated 41,607 jobs in the industry.59