(MENAFN- KNN India) New Delhi, May 31 (KNN)
Foreign direct investment (FDI) equity inflows into India declined moderately to USD 44.42 billion in the fiscal year 2023-24, reflecting a 3.49 per cent decrease from the previous year's figure of USD 46.03 billion, according to the latest data released by the government.
The dip in inflows was attributed to lower infusion across several key sectors, including services, computer hardware and software, telecommunications, automotive, and pharmaceuticals.
However, inflows during the January-March quarter of FY24 rose by a robust 33.4 per cent to USD 12.38 billion compared to USD 9.28 billion in the corresponding period last year.
Overall FDI, encompassing equity inflows, reinvested earnings, and other capital, saw a marginal 1 per cent decline to USD 70.95 billion in 2023-24 from USD 71.35 billion in the previous fiscal year, data from the Department for Promotion of Industry and Internal Trade (DPIIT) revealed.
For the 2021-22 fiscal year, India had attracted record-high FDI inflows of USD 84.83 billion. During 2023-24, equity inflows decreased from major investing countries such as Mauritius, Singapore, the United States, the United Kingdom, the United Arab Emirates, the Cayman Islands, Germany, and Cyprus. Conversely, inflows increased from the Netherlands and Japan.
Sectorally, inflows contracted in services, computer software and hardware, trading, telecommunications, automobiles, pharmaceuticals, and chemicals. In contrast, construction activities (infrastructure), development projects, and the power sector registered healthy growth in inflows during the period under review.
Regionally, Maharashtra continued to be the top recipient state, attracting USD 15.1 billion in FDI equity inflows during 2023-24, up from USD 14.8 billion the previous year.
Gujarat also witnessed a surge, with inflows rising to USD 7.3 billion from USD 4.7 billion in 2022-23. Inflows grew in Tamil Nadu, Telangana, and Jharkhand as well.
However, FDI inflows into Karnataka plunged to USD 6.57 billion from USD 10.42 billion in 2022-23. Other states and union territories that experienced a decline in FDI inflows during the year included Delhi, Rajasthan, Uttar Pradesh, and Haryana.
(KNN Bureau)
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