FDI inflows contract in FY19, first in 6 yrs, on weak economic conditions

Singapore replaces Mauritius as the top source of FDI

Inbound foreign direct equity investments declined for the first time in six years in FY19, in line with the overall weak economic conditions.

Latest figures released by the Department for Promotion of Industry and Internal Trade (DPIIT) on Tuesday showed that equity inflows reduced to $44.36 billion, down by 1 per cent from $44.85 billion last year.

“Apart from a wait-and-watch policy adopted by global investors before the elections, volatility in the stock market and the overall weak health of the corporate sector may have scared off new inflows,” said Devendra Pant, chief economist at India Ratings.

India’s economy is officially projected to