The Foreign Direct Investment (FDI) into India decreased by 34 per cent in the April to June period in the current fiscal year. Affected by the dip in computer hardware and software, telecom, auto, and pharma, the FDI inflow in the country stood at $10.94 billion for the period, government data revealed.
According to a PTI report, the FDI inflows for the April to June period in the previous fiscal year stood at $16.58 billion. FDI flow during the January to March period in 2023 also declined by 40.55 per cent to $9.28 billion.
Further, according to the data given by the Department for Promotion of Industry and Internal Trade (DPIIT), investments from overseas declined in April, May, and June months in this fiscal year to $5.1 billion, $2.67 billion, and $3.16 billion respectively. The overseas investment for the corresponding periods stood at $6.46 billion, $6.15 billion, and $3.98 billion, a year ago.
The overall FDI, including equity inflows, reinvested earnings, and other capital, dipped 21.4 per cent during the April to June period in the current financial year to $17.56 billion, against $22.34 billion for the same period a year earlier.
FDI equity inflows from prominent countries like Singapore, the US, the UK, UAE, and Mauritius stayed on the downward trend during the quarter. Investments from the Cayman Islands and Cyprus witnessed a major fall. While investments from the Cayman Islands fell to $75 million in the April to June quarter in the current fiscal year, against $450 million in the same period a year ago, Cyprus reported investments worth only $6 million for the quarter, down from $605 million, on a year-on-year (YoY) basis.
However, inflows from the Netherlands, Japan, and Germany were on an upward trend. But, looking at the data sector-wise, computer software and hardware, trading, telecommunication, automobile, pharmaceuticals, and chemicals reported a fall in inflows. While the services, construction (infrastructure) activities, and metallurgical industry reported a positive trend in inflows.
Looking at the state-wise performance, Maharashtra reported the highest inflow worth $4.46 billion during the period, but it was still on the declining end compared to the inflow of $5.24 billion for the same period a year earlier. Likewise, overseas investment in Karnataka dipped to $1.46 billion for the April to June quarter in the current financial year, against $2.8 billion in the same period last year.
Other regions which reported a declining FDI trend include Gujarat, Rajasthan, Delhi, Tamil Nadu, and Haryana. Telangana, Jharkhand, and West Bengal reported positive FDI trends during the quarter.
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