FDI declines by 16% in FY23, first YoY contraction in decade

27 May '23

1 min read

Pic: Adobe Stock

Insights

India's gross FDI flows declined by 16.3 per cent on an annual basis in fiscal 2022-23 to $71 billion for the first time in a decade, primarily due to a slowdown in the global economy, according to the Reserve Bank of India.
Manufacturing was among the sectors that recorded the highest decline in FDI inflows compared with the preceding year.

India’s gross foreign direct investment (FDI) flows fell by 16.3 per cent on an annual basis in fiscal 2022-23 to $71 billion for the first time in a decade, primarily due to a slowdown in the global economy, according to data from the Reserve Bank of India (RBI).

The gross FDI inflows in 2021-22 were worth $81.97 billion, up by 10 per cent over fiscal 2019-20.

The last year-on-year contraction in FDI was in 2012-13 when the inflows declined by 26 per cent to $34.298 billion.

Net FDI declined by nearly 27 per cent as well to $28 billion in 2022-23 as compared with $38.6 billion a year ago, mainly due to moderation in gross foreign direct investment inflows and an increase in repatriation, an article published in the RBI's latest monthly bulletin said.

Manufacturing was among the sectors that recorded the highest decline in FDI inflows compared with the preceding year.

The United States, Switzerland and Mauritius were the major contributors towards the fall in inflows during the same period.

Fibre2Fashion News Desk (DS)

More Reserve Bank Of India News... More Textiles News - India...