FDI inflows decline 16% to $71 billion for first time in a decade: RBI data

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

BS Web Team New Delhi
Foreign direct investment

Listen to This Article

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, 

Also Read

What's behind the fall in India's FDI inflows?

TMS Ep311: India's FDI Inflows, Second-hand Car, Auto Stocks, India Stack

Indian real estate saw foreign inflows of $26.6 billion between 2017-22

FDI equity inflow contracts 15% to $36.7 billion in Apr-Dec: Govt data

From Ukraine war to inflation, global headwinds take a toll on FDI inflows

Fake ITCs under GST regime huge challenge for govt: CBIC

Himachal CM announces Rs 250 cr for Dhagwar milk processing plant

Inflation war not over; FY23 growth may top 7%: RBI Guv Shaktikanta Das

Himachal Transport Department targets Rs 850 cr revenue in FY24: Dy CM

Retrospectively convert highway bank guarantees into surety bonds: Gadkari

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)

First Published: May 24 2023 | 11:26 PM IST

Explore News