India has attracted foreign direct investment (FDI) of $22.78 billion in 2012, a decline of 34% over the previous year due to global economic uncertainties.
The country had attracted FDI of $34.62 billion in 2011, according to the Department of Industrial Policy and Promotion data.
"The dip in foreign direct investment (FDI) inflows is mainly due to uncertainties in the global economy," an official said.
However, the official said that liberalisation of FDI policy in various sectors such as retail and civil aviation is expected to boost inflows in the coming months.
In 2012, the country received the highest FDI of $4.67 billion in September followed by $2.21 billion in February and $2 billion in January 2012.
Foreign investments are important for India, which needs around $1 trillion in the next five years to overhaul its infrastructure sector such as ports, airports and highways to boost growth.
Decline in foreign investments will put pressure on the country's balance of payments and could also impact the value of rupee.