Net FDI in India more than doubles in Apr-Aug 2024, shows RBI data

Improving FDI to support growth in manufacturing

Showing signs of revival, net foreign direct investment (FDI) in India— inflows minus outflows—more than doubled in April–August this year to $6.62 billion from $3.26 billion in the same period last year.

Gross inward FDI during April–August 2024 increased to $36.1 billion from $27.4 billion a year ago, according to the Reserve Bank of India’s data (October 2024 bulletin).

Repatriation/disinvestment by those who made direct investments in India rose to $20.76 billion in the five months of FY25, up from $18.88 billion in April–August 2023, the RBI data showed.

Around two-thirds of the gross FDI inflows were directed towards manufacturing, financial services, communication services, and electricity and other energy sectors. About three-fourths of the flows were sourced from Singapore, Mauritius, the UAE, the Netherlands, and the US.

The “State of Economy” report in the October bulletin observed that recent updates by multilaterals and credit rating agencies indicate that India’s medium-term prospects remain bright, driven by continuing reforms, infrastructure development, and sustainable technologies. Improving prospects for foreign direct investment (FDI) would support growth and investment, particularly in manufacturing, it added.