Gross inward foreign direct investment (FDI) almost remained stable at $71.0 billion during 2023-24 compared with $71.4 billion in FY23, according to the Reserve Bank of India’s (RBI) provisional data.
Repatriation/disinvestment by those who made direct investments in India rose sharply to $44.40 billion in FY24, up from $29.34 billion in FY23.
According to the “State of Economy” report in RBI’s bulletin for May 2024, more than 60 per cent of the FDI equity flows were directed towards manufacturing, electricity and other energy, computer services, financial services, and retail and wholesale trade.
Singapore, Mauritius, the US, the Netherlands, Japan, and the UAE contributed to more than 80 per cent of the flows. Net FDI declined to $10.6 billion during 2023-24 from $28.0 billion a year ago, mainly reflecting higher repatriation.
Global FDI flows have been impacted by higher borrowing costs, deepening geo-fragmentation, and rising protectionism in recent years. Nonetheless, India is among the top 10 economies expected to experience high FDI momentum in 2024, according to the “State of Economy” report, quoting fDi Intelligence. fDi Intelligence is a foreign direct investment publication by FT Ltd providing an up-to-date review of global investment activity.
Since the onset of the COVID-19 pandemic, there has been a structural change in global investment patterns, shifting FDI flows from developed economies towards developing economies.
