Foreign direct investment (FDI) equity inflows into India experienced a modest decline of 3.49% to reach USD 44.42 billion in the fiscal year 2023-24, as reported by government data.
This dip was attributed to reduced investments in sectors like services, computer hardware and software, telecom, auto, and pharmaceuticals.
Comparatively, FDI inflows in the preceding fiscal year 2022-23 stood at USD 46.03 billion.
However, there was a notable surge in FDI inflows during the January-March period of FY24, witnessing a 33.4% increase to USD 12.38 billion compared to USD 9.28 billion in the same period of the previous fiscal year.
The overall FDI, encompassing equity inflows, reinvested earnings, and other capital, saw a marginal decline of one percent, totaling USD 70.95 billion during 2023-24, in contrast to USD 71.35 billion in 2022-23, according to data from the Department for Promotion of Industry and Internal Trade (DPIIT).
India had received its highest-ever FDI inflows of USD 84.83 billion in the fiscal year 2021-22.
The fiscal year 2023-24 witnessed a decrease in FDI equity inflows from several major countries, including Mauritius, Singapore, the US, the UK, UAE, Cayman Islands, Germany, and Cyprus. Nevertheless, there was an increase in inflows from the Netherlands and Japan.
Sector-wise, inflows diminished in services, computer software and hardware, trading, telecommunication, automobile, pharma, and chemicals. Conversely, there was healthy growth in inflows in the construction (infrastructure) activities, development, and power sectors during the reviewed period.
In the fiscal year 2022-23, FDI equity inflows into India had experienced a decline of 22%.
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