Net foreign direct investment (FDI) in India fell sharply to $4.99 billion in April-June 2023 (Q1FY24) from $13.92 billion in April-June 2022 (Q1FY23), reflecting the impact of the global slowdown.

In its monthly bulletin for August 2023, the Reserve Bank of India (RBI) reported that the decline in net FDI was due to a decrease in gross inward FDI as well as an increase in repatriation of investments from India (as shown in Chart 55a). . Notably, repatriation from the country increased to $10.43 billion in Q1FY24, higher than $6.21 billion in the same period last year.

The sectors that received the most investment during this period included manufacturing, financial services, professional services, computer services, electricity and other energy sectors. According to the RBI, these sectors accounted for more than two-thirds of the fresh equity inflows during this time frame.

The major source countries for FDI during this period were Singapore, followed by the Netherlands, Japan, the US and Mauritius. According to FDI Intelligence, major FDI projects announced globally in the first half of 2023 (H1:2023) were mainly focused on green energy transition and digitisation.

first published: 17 August 2023 | 9:16 p.m. First

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