India's target to achieve $35 billion in foreign direct investments (FDIs) in fiscal 2009 may get thwarted due to global economic slowdown, bottlenecks on infrastructure investments, government inability to sign nuclear deal and inflation. A survey conducted by the Associated Chambers of Commerce and Industry of India (Assocham) disclosed that India's FDI target is likely to fall short by 7-8 billion dollar.

Finance Minister P Chidambaram recently appealed the oil producing countries to increase its supply to the control prices.  

According to the survey, majority of the CEOs expect a further rise in interest rates causing credit and liquidity crisis in the domestic market, which will discourage foreign investment. Industrial production has been falling as the manufacturing sector is also not doing well. In comparison, agriculture fared better and is expected to do still better. However, agriculture alone will not enhance the country's GDP.

The services sector, followed by computer software and hardware, telecom, construction activities, housing and real estate are likely to match FDIs received in the previous year.

Assocham president, Sajjan Jindal said, "The financial year 2008-09 began with difficult times, with inflationary pressure mounted beyond manageable limits. Its adverse impact on India Inc has been substantial in the sense that the yearly profitability of Indian industry would suffer a beating to an extent of 15-20%."