New Delhi, Nov. 5: India received foreign direct investment (FDI) of $2.56 billion in September, an increase of 259 per cent over the same month a year ago.

“Despite troubles in the world economy, India continued to attract FDI, which implies that the target of $35 billion for the 2008-09 fiscal will be achieved,” commerce and industry minister Kamal Nath said.

In the first half of the fiscal, FDI grew to $17.21 billion against $7.25 billion a year ago, an increase of 137 per cent.

Manufacturing received $5 billion during April-August, a rise of 41 per cent over inflows in the year-ago period.

Services received $2.34 billion, construction, $1.64 billion, housing and real estate, $1.62 billion and computer hardware and software, $1.36 billion.

Between April and August, the country received maximum FDI from Mauritius ($5.3 billion), followed by Singapore ($1.7 billion), the US ($1.15 billion) and the Netherlands ($580 million).

The government plans to tweak FDI norms to attract dollars in the wake of the huge exodus of portfolio investments from the domestic stock markets and the fall in the value of the rupee.

Changes in rules for telecom and retail are expected to boost investment. However, officials said that multi-brand retail would be off limits as the government did not wish to court controversy.

Efforts to clarify the ambiguity that clouds investments in captive mining will also be made.

According to officials, the move to open up defence production can result in global military equipment makers such as Lockheed Martin and Bombardier setting up joint ventures.

The government has set an FDI target of $35 billion for the current fiscal, which analysts feel, it is unlikely to achieve given the global financial meltdown.