FDI in services, computer hardware and software, telecom, auto and pharma fell in 2023-24 as compared to the previous fiscal, data released by the Department for Promotion of Industry and Internal Trade (DPIIT) showed.
Inflows during January-March FY24 rose 33.4% to $12.38 billion as against $9.28 billion in the year-ago period. In the financial year, October saw the highest inflows at $6.33 billion while the lowest FDI came in December at $2.37 billion.
Total FDI, which includes equity inflows, reinvested earnings and other capital, fell 1% to $70.95 billion in FY24 from $71.35 billion in 2022-23. I’m January, the United Nations Conference on Trade and Development attributed the FDI slump in developing nations to weak investment and economic uncertainty.
As per the DPIIT data, FDI equity inflows decreased from Mauritius, Singapore, the US, the UK, UAE, Cayman Islands, Germany, and Cyprus in the last fiscal but increased from the Netherlands and Japan.
Among sectors, FDI in construction (infrastructure) activities, development and power sectors more than doubled in 2023-24. Investment from overseas in services sector was down 24% on-year while that in computer software and hardware decreased 15%.Services includes banking, financial services and insurance, outsourcing as well as R&D.Maharashtra received the highest FDI inflows at $15.11 billion followed Gujarat at $7.3 billion and Karnataka at $6.57 billion.
However, Karnataka, Delhi, Rajasthan, Uttar Pradesh and Haryana witnessed a decline in FDI compared to the last fiscal.
Content Source: economictimes.indiatimes.com