The Indian economy suffered a year-on-year decline of around 3 per cent in foreign direct investment (FDI) in 2013, the Department of Industrial Policy & Promotion (DIPP) revealed in its latest report.

According to DIPP data, India attracted FDI worth US$22.03 billion during 2013, as against US$22.78 billion of FDI in the previous year. Any decline in FDI hurts the value of rupee. The partially-convertible Indian currency, which had depreciated to its record low of 68.85 against the US dollar on August 28 last year, recently slipped below the psychological mark of 60.

Services, pharmaceuticals, chemicals, power, automobiles, construction, telecommunications, and computer software & hardware, emerged as the top sectors of the Indian economy to attract FDI.

The list of nations that made investments in India during the year under review includes Mauritius, Singapore, the Netherlands, the United Kingdom, Germany, France, Japan and UAE.

Towards the end of 2013, British retail giant Tesco submitted its application to initially invest $110 million in opening a supermarket chain in partnership with India conglomerate Tata Group's Trent.

The Indian economy is projected to require nearly US$1 trillion during the 12th Five Year Plan (between FY2012-13 and FY2016-17) to fund its ambitious infrastructure growth projects covering sectors like highways and airports.