Net foreign direct investment (FDI) in India, inflows minus outflows, declined 38.4 per cent year-on-year to $15.41 billion in the first 10 months of this financial year due to an increase in the repatriation of capital.
According to the Reserve Bank of India’s data in the March 2024 bulletin, FDI in India was $25.53 billion and outflows were $10.11 billion in April 2023-January 2024.
In the same period last year, FDI inflows stood at $36.75 billion and outflows at $11.75 billion.
Repatriation and divestment by those who made direct investments in India rose to $34 billion in the 10 months of the financial year from $24.99 billion in the year-ago period, according to RBI data.
The “state of economy” report in the RBI’s monthly bulletin for March 2024 noted that manufacturing, computer services, electricity, and other energy sectors, financial services, and transport accounted for about two-thirds of the FDI equity inflows in the 10 months of the financial year.
Around 80 per cent of the equity flows were received from Singapore, Mauritius, the US, the Netherlands, Japan, and the United Arab Emirates.
The report mentioned that despite global FDI flows remaining weak in 2023, with only a modest increase of 3 per cent over 2022, India fared better than its Asian peers.
FDI into India is expected to receive a boost from the trade and economic partnership agreement signed with the European Free Trade Association on March 10.
The TEPA aims to attract FDI of $100 billion in India from EFTA over the next 15 years and generate one million direct employment opportunities, it added.
