FDI inflows drop by 34% in Q1 of the fiscal

FDI inflows from countries including Mauritius, Singapore, the US and the UAE saw a decline during April-June 2023-24. Inflows declined in sectors like Computer software and hardware, trading, telecommunication, automobile, pharmaceuticals, and chemicals.   

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Foreign Direct Investment (FDI) dropped by 34% to US$10.94 Billion during the April-June period in the current fiscal. The data from the Department for Promotion of Industry and Internal Trade (DPIIT) showed that FDI inflows stood at US$16.59 billion during April-June 2022-23

The overall FDI, including equity inflows, reinvested earnings, and other capital, dropped by 21.4% to US$17.56 billion during the April to June period in the current financial year, against US$22.34 billion recorded in the same period last year.

Data from DPIIT showed that sectors like computer software and hardware, trading, telecommunication, automobile, pharmaceuticals, and chemicals had witnessed a fall in inflows. While the services, construction (infrastructure) activities, and metallurgical industry saw a positive trend in inflows.

According to the data, FDI inflows from countries including Mauritius, Singapore, the US and the UAE had declined during April-June 2023-24. The FDI inflows from the Cayman Islands and Cyprus saw a steep fall. Investments from the Cayman Islands fell to US$75 million in the April to June quarter this fiscal as against US$450 million during the same in the previous year. FDI inflows from Cyprus were worth US$6 million in the April-June quarter, down from US$605 million in the same period last year.

Inflows from the Netherlands, Japan, and Germany however saw an upward trend.