Foreign Direct Investment decreased by 34 percent in April-June quarter, compared to last year
FDI: Foreign direct investment (FDI) declined by 34 percent to $10.94 billion during the April-June quarter due to lower inflows into computer hardware and software, telecom, auto, and pharma sectors. FDI of $ 16.85 billion came in the same period a year ago. During January-March 2023, FDI registered a decline of 40.55 percent and stood at $9.28 billion.
Foreign direct investment (FDI) declined by 34 percent to $10.94 billion during the April-June quarter due to lower inflows into computer hardware and software, telecom, auto, and pharma sectors. FDI of $ 16.85 billion came in the same period a year ago.
During January-March, 2023, FDI registered a decline of 40.55 percent and stood at $9.28 billion. According to the Department for Promotion of Industry and Internal Trade (DPIIT), month-on-month FDI inflows stood at $5.1 billion in April, $2.67 billion in May and $3.16 billion in June. Whereas in the same period a year ago, it was $ 6.46 billion, $ 6.15 billion, and $ 3.98 billion respectively.
Total FDI (equity inflows, reinvestment income, and other capital) in the first quarter of the current financial year also declined by 21.4 percent to $17.56 billion as against $22.34 billion in April-June 2022. FDI inflows from major countries including Singapore, Mauritius, the US, the UK, and UAE declined during the April-June quarter.
Investments from the Cayman Islands and Cyprus declined significantly to $75 million and $60 million during April-June 2023 as compared to $450 million and $605 million, respectively, in the year-ago period. However, FDI inflows have increased in the Netherlands, Japan, and Germany.
Talking about state-wise foreign investment, Maharashtra received the highest FDI at $4.46 billion, but it was less than $5.24 billion in the same period last year. Foreign investment inflows in Karnataka declined to $1.46 billion, as against $2.8 billion during April-June, 2022. Other states or union territories where FDI declined during the quarter include Gujarat, Rajasthan, Delhi, Tamil Nadu, and Haryana. However, an increase in foreign investment has been registered in Telangana, Jharkhand, and Bengal.
At the same time, DPIIT Secretary Rajesh Kumar Singh said that rising interest rates globally and worsening geopolitical situation have affected foreign investment coming to India in 2022-23. FDI equity inflows in India to decline by 22 percent to $46 billion in 2022-23.
