According to government data, foreign direct investment (FDI) into India decreased 34% to USD 10.94 billion during April to June 2023–24, with fewer inflows in computer hardware and software, telecom, auto, and pharma being the main drivers. During April to June 2022–2023, FDI inflows totaled USD 16.58 billion. The amount of inflows between January and March 2023 also decreased by 40.55 percent to USD 9.28 billion.
According to Department for Promotion of Industry and Internal Trade (DPIIT) data, foreign investments decreased in April, May, and June of this fiscal year to USD 5.1 billion, USD 2.67 billion, and USD 3.16 billion, respectively, compared to USD 6.46 billion, USD 6.15 billion, and USD 3.98 billion in the corresponding periods last year.
In comparison to April through June of 2022, total FDI, which includes equity inflows, reinvested earnings, and other capital, decreased by 21.4% to USD 17.56 billion. Inflows of FDI equities from important nations, such as Singapore, Mauritius, the US, UK, and UAE, fell throughout the quarter.
Investments from the Cayman Islands and Cyprus fell sharply from USD 450 million and USD 605 million in the same time last year to USD 75 million and USD 6 million in April–June 2023, respectively. However, the Netherlands, Japan, and Germany contributed more to the inflows. Sector-wise, inflows decreased in the trading, telecommunications, automotive, pharmaceutical, and chemical industries.
The metallurgical industry, building (infrastructure) operations, construction development, and services all saw increases in inflows, nevertheless. Maharashtra led all states in inflows during the time with USD 4.46 billion, however, this was less than the USD 5.24 billion received from April to June 2022.
Similar to Karnataka, foreign inflows dropped to USD 1.46 billion in April–June 2023 from USD 2.8 billion in the same period the previous year. Gujarat, Rajasthan, Delhi, Tamil Nadu, and Haryana are some other states and UTs where FDI decreased during the quarter. Contrarily, FDI increased in Telangana, Jharkhand, and West Bengal during the quarter.
