Updated February 29th, 2024 at 15:51 IST

FDI inflows dip 13% to $32 billion in first nine months of current fiscal

Comparatively, FDI inflows stood at $36.74 billion during the corresponding nine months of the previous fiscal year.

Reported by: Business Desk
Dollar hits three-month low | Image:Unsplash
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According to the government data released by the Department for Promotion of Industry and Internal Trade (DPIIT), foreign direct investment (FDI) inflows into India witnessed a decline of 13 percent to $32.03 billion during the period of April-December 2023. The decline was attributed to reduced investments in sectors such as computer hardware and software, telecommunications, automobiles, and pharmaceuticals.

Comparatively, FDI inflows stood at $36.74 billion during the corresponding nine months of the previous fiscal year. However, there was a notable increase in inflows during the October-December quarter of the current fiscal, rising by 18 percent to $11.6 billion from $9.83 billion recorded during the same quarter in 2022-23.

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The total FDI, encompassing equity inflows, reinvested earnings, and other capital, witnessed a decrease of approximately 7 percent to $51.5 billion during the period under review, down from $55.27 billion in April-December 2022.

FDI equity inflows from major countries including Singapore, the US, the UK, Cyprus, and the UAE decreased during the nine-month period of the fiscal year. Investments declined from the Cayman Islands and Cyprus, amounting to $215 million and $796 million, respectively, compared to $624 million and $1.15 billion recorded in the same period of the previous year. However, there was an increase in inflows from Mauritius, the Netherlands, Japan, and Germany.

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Sector-wise, inflows contracted in various sectors such as computer software and hardware, trading, services, telecommunications, automobiles, pharmaceuticals, and chemicals. Conversely, sectors like construction (infrastructure), development, and power witnessed growth in inflows.

On a state-wise basis, Maharashtra received the highest inflow of $12.1 billion during the period, up from $10.76 billion in the same period of the previous year. However, overseas capital inflows in Karnataka dropped to $3.6 billion from $8.77 billion recorded in the same period of the previous fiscal year.

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States and Union Territories such as Delhi, Tamil Nadu, West Bengal, Rajasthan, and Haryana also experienced a decline in FDI inflows during the period under review, while Gujarat, Telangana, and Jharkhand recorded positive growth in inflow.

(With PTI inputs)

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Published February 29th, 2024 at 13:19 IST