 "Net FDI into India down 55% to $9.69 billion in Apr-Dec 2023: RBI Bulletin")
The net foreign direct investment (FDI) into India, inflows minus the outflows, declined sharply by 55.2 per cent to $9.69 billion in April-December 2023, from $21.63 billion in the corresponding period in 2022, mainly due to a rise in repatriation of equity capital.
According to the Reserve Bank of India’s February 2024 bulletin, FDI into India was $19.23 billion and outflows were $9.54 billion during the April-December 2023 period. During the corresponding period of 2022, FDI inflows stood at $32.68 billion, while outflows touched $11.05 billion.
Repatriation/disinvestment by those who made direct investments in India surged to $32.26 billion in the nine months of FY24, up from $22.81 billion in April-December 2022.
According to the “State of Economy” report in RBI’s monthly bulletin for February 2024, about 65 per cent of the FDI equity inflows were received in manufacturing, electricity and other energy sectors, transport, financial services, and retail and wholesale trade sectors.
Singapore, Mauritius, the US, Japan, the UAE, and the Netherlands accounted for more than three-fourths of the equity flows during the same period.
According to fDi Intelligence, the number of globally announced greenfield FDI projects increased from 156 in 2022 to 174 in 2023. The most popular FDI sectors in 2023 were associated with green energy and digitisation, reflecting an undergoing structural shift in the world economy. fDi Intelligence is a specialist division from the Financial Times that provides a comprehensive offering of services related to foreign direct investment.
Earlier, fDi had commented that India is among the top 10 countries of the world, with the strongest expected investment momentum in 2024.
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