Foreign Direct Investment (FDI) inflows in India are badly affected by the environmental policies. Construction, mining and business services have ruled a period of April-December 2010.

RBI said that many recent episodes incurred in the mining sector, integrated township projects and construction of ports, are hurt by environment sensitive policies and had badly affected the sentiments of investors. The problem does not end here; it is accelerated by the constant procedural delays, land acquisition issues and availability of quality infrastructure.

RBI further said that all these hurdles are structural in nature and can be timely taken care.

RBI released the report on macroeconomic and monetary developments in the third quarter of 2010-11 which shows that Indian economy is witnessing a gradual credit growth but major portion is still going to the infrastructure sector.

The figures reveal that there is 23.3% credit growth in the year ending 2010 as compared to the 11.5 % last year.

Bank credit to personal loan segment has shown a rise of 13.4% on December 2010 over last year. While credit flow to the personal loans in 2009, had shown a negative growth of 0.4%.

Whereas credit flow to the, service segment also show a hike of 25% against 11.5% in the year ago period.

Talking about agriculture sector, credit flow remains unchanged at 21%.

Domestic and foreign non-bank sources are shrinking at higher rate causing a decline in arranging funds from non-bank sources.