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FDI inflows record 1st decline in six years in FY19

Press Trust of India  |  New Delhi 

(FDI) in declined for the first time in the last six years in 2018-19, falling by 1 per cent to USD 44.37 billion as overseas fund inflows subsided in telecom, pharma and other sectors, official data showed.

According to the latest data of the (DPIIT), FDI in 2017-18 was a record USD 44.85 billion.

Last time it was in 2012-13 when foreign inflows had registered a contraction of 36 per cent to USD 22.42 billion compared to USD 35.12 billion in 2011-12.

Since 2012-13, the inflows had been continuously growing and reached a record high in 2017-18.

According to the data, FDI inflows in telecommunication, construction development, and power sectors declined significantly in 2018-19.

in telecommunication dropped to USD 2.67 billion in 2018-19 from USD 6.21 billion in 2017-18, in construction development to USD 213 million (USD 540 million), in to USD 266 million (USD 1 billion) and in the power sector to USD 1.1 billion (USD 1.62 billion).

Sectors that recorded a growth in FDI includes services (USD 9.15 billion), and hardware (USD 6.41 billion), trading (USD 4.46 billion), and automobile (USD 2.62 billion).

Further, has replaced as the top source of foreign investment into in the last fiscal, accounting for USD 16.22 billion inflows. has received USD 8 billion FDI from

The other major investors in the country includes Japan, the Netherlands, the UK, the US, Germany, Cyprus, the UAE and

FDI is important as India would require huge investments in the coming years to overhaul its infrastructure sector to boost growth.

Decline in foreign inflows could put pressure on the country's balance of payments and may also impact the value of the rupee.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, May 28 2019. 16:55 IST