Net FDI in India down to $ 13.54 billion in Apr-Nov 2023, shows RBI data

This decline was primarily due to a fall in global inflows and an increase in the repatriation of equity capital

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The net foreign direct investment (FDI) in India, inflows minus the outflows, declined to $13.54 billion in April-November 2023 from $19.76 billion in the same period in 2022, due to the fall in global inflows and a rise in repatriation of equity capital.

The Reserve Bank of India’s data (January 2024 bulletin) said FDI in India was $21.39 billion and outflows were $7.85 billion in April-November 2023.

In 2022, FDI inflows stood at $29.11 billion, while outflows touched $9.35 billion during the same period.

Repatriation/disinvestment by those who made direct investments in India rose to $25.58 billion in the eight months of FY24 from $19.87 billion in April-November 2022, according to RBI data.

According to the “State of Economy” report in RBI’s monthly bulletin for January 2024, manufacturing, electricity, and other energy sectors, transport, financial services, and retail and wholesale trade contributed around two-thirds of the gross inward FDI equity flows.

READ: India eyes $100 bn annual FDI in coming years: IT minister Vaishnaw 

The bulk of the equity inflows (69.9 per cent) were received from Mauritius, Singapore, Japan, the United States, and the Netherlands during the same period.

As reported by fDi Intelligence, India is among the top 10 countries of the world, with the strongest expected investment momentum in 2024, the report said.

Surging data centre capacity is a comparative advantage for India. This capacity is poised to exceed one gigawatt by this year and position the country as a global data centre hub.

This development has positive implications for foreign direct investment, which started turning around in the second half of 2023-24 and is flowing increasingly into business services, it added.