For the first time in a decade, the gross foreign direct investment (FDI) flows witnessed a decline of nearly 16 per cent to $71 billion, recent data from the Reserve Bank of India (RBI) shows.
According to reports, the decline in 2022-2023 is mainly due to a slowdown in the global economy. In 2021-2022, the FDI inflows were $81.97 billion, up 10 per cent over fiscal 2019-20.
The net FDI also witnessed a decline of nearly 27 per cent to $28 billion in 2022-23 as against $38.6 billion a year ago. The decline was attributed to moderation in gross foreign direct investment inflows and an increase in repatriation.
The highest decline in FDI inflows as against the previous year was recorded in manufacturing, computer services, and communication services and the countries which were the major contributors to the fall during the period were the US, Switzerland, and Mauritius.
RBI data added, 'FDI Intelligence', to say India was the second largest recipient of FDI ($26.2 billion) in the semiconductor industry for the year 2022, second only to the US ($33.8 billion).
Keeping in line with the Government of India's efforts to develop the industry, massive investments in capital-intensive chip FDI projects are underway,
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It further said foreign portfolio investors (FPIs) turned net purchasers in domestic financial markets in April, primarily in the equity segment ($1.9 billion), which was supplemented by an inflow in the debt segment ($0.2 billion).
(With PTI inputs)
(With PTI inputs)