Net FDI In India Falls to $13.54 Billion In Apr-Nov 2023: RBI Data

The data showed that net FDI fell to $13.54 billion during the first eight months of the current fiscal year, against $19.76 billion a year earlier, due to the fall in global inflows

Majority of the equity inflows, amounting to nearly 70 per cent, came from Mauritius, Singapore, Japan, the United States, and the Netherlands during the period under review. 

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The net foreign direct investment (FDI) in India logged a decline in the April-November 2023 period, against the same period a year earlier, official data from the Reserve Bank of India revealed. The data showed that net FDI fell to $13.54 billion during the first eight months of the current fiscal year, against $19.76 billion seen in the corresponding period a year earlier. 

This decline was attributed to the fall in global inflows and a surge in the repatriation of equity capital, reported Business Standard. The data revealed in the January 2024 bulletin of the regulator stated that FDI in India stood at $21.39 billion, however, FDI by India, touched $7.85 billion in the April to November 2023 period. FDI by India represents the money invested abroad from the country. 

Comparatively, for the year 2022, FDI in India remained at $29.11 billion, while FDI by the country stood at $9.35 billion during the period under review. The data further found that repatriation and disinvestment by entities who made direct investments in the country increased to $25.58 billion in the April to November 2023 period, against $19.87 billion logged in the first eight months of the previous fiscal year.

An article titled, ‘State of Economy’ in the regulator’s monthly bulletin stated that manufacturing, electricity, other energy sectors, transport, financial services, retail, and wholesale trade amounted to approximately two-thirds of the gross inward FDI equity flows. The majority of the equity flows, amounting to nearly 70 per cent, came from Mauritius, Singapore, Japan, the United States, and the Netherlands during the period under review. 

According to fDi Intelligence, India stood among the top ten countries globally with the strongest expected investment momentum in 2024. The report added that India’s rapidly increasing data centre capacity worked as a comparative advantage for the country. This capacity is estimated to bypass one gigawatt by 2024, establishing the nation as a global data centre hub. This development is expected to yield positive results for foreign direct investment, which has started to recover in the latter half of the ongoing fiscal year, and is increasingly flowing into business services, it noted.