A representative image of the Indian and US currencies.
Credit: PTI Photo
New Delhi: Foreign direct investment (FDI) inflows in India declined 13 per cent to $32.03 billion in April-December 2023, dragged down by lower infusion in computer hardware and software, telecom, auto, and pharma sectors, according to the latest government data.
FDI inflows stood at $36.74 billion during the corresponding nine months of the preceding fiscal.
Inflows during the October-December quarter of the current fiscal, however, rose by 18 per cent to $11.6 billion as against $9.83 billion during the same quarter of 2022-23.
The total FDI -- which includes equity inflows, reinvested earnings and other capital -- declined by about 7 per cent to $51.5 billion during the period under review against $55.27 billion in April-December 2022, the data from the Department for Promotion of Industry and Internal Trade (DPIIT) showed.
During the nine-month period of this fiscal, FDI equity inflows decreased from major countries, including Singapore, the US, the UK, Cyprus and the UAE.
Investments fell significantly from the Cayman Islands and Cyprus to $215 million and $796 million, respectively, during April-December 2023 as against the two comparative figures of $624 million and $1.15 billion recorded in the year-ago period.
However, inflows increased from Mauritius, the Netherlands, Japan and Germany.
Sectorally, inflows contracted in computer software and hardware, trading, services, telecommunication, automobile, pharma and chemicals.
In contrast, construction (infrastructure) activities, development and power sectors registered growth in inflows.
State-wise, Maharashtra received the highest inflow of $12.1 billion during the period. It was $10.76 billion in the same period a year ago.
Overseas capital inflows in Karnataka plunged to $3.6 billion in April-December 2023 from $8.77 billion in the same period of previous fiscal year.
Other states/Union Territories where FDI dipped during the period under review included Delhi, Tamil Nadu, West Bengal, Rajasthan and Haryana.
The inflow, however, recorded a positive growth in Gujarat, Telangana, and Jharkhand.
An official has earlier stated that hardening interest rates globally and worsening geopolitical situation impacted FDI inflows.
FDI equity inflows into India declined 22 per cent to $46 billion in 2022-23.