New Delhi- Foreign direct investment (FDI) into India declined by 22 per cent to $46 billion in 2022-23, dragged by lower inflows in computer hardware and software, and automobile industry, according to the Department for Promotion of Industry and Internal Trade (DPIIT) data. The FDI inflows stood at USD 58.77 billion during 2021-22.
Total FDI inflows, which include equity inflows, re-invested earnings and other capital, declined by 16 percent to $70.97 billion in the last fiscal as against $84.83 billion in 2021-22. During April-March 2022-23, Singapore emerged as the top investor with $17.2 billion FDI.
It was followed by Mauritius ($6.13 billion), the US ($6 billion), the UAE ($3.35 billion), the Netherlands ($2.5 billion), Japan ($1.8 billion), UK ($1.73 billion), Cyprus ($1.27 billion), Cayman island ($772 million), and Germany ($547 million), the data showed. The FDI inflows have contracted in 2022-23 from Mauritius, the US, the Netherlands, the Cayman Islands, and Germany.
Though the computer software and hardware sector attracted the highest inflows of $9.4 billion during the last financial year, these inflows are down as compared to USD 14.5 billion in 2021-22. Similarly, FDI in the automobile industry dipped significantly to $1.9 billion in 2022-23 as compared to about $7 billion in 2021-22. The other sectors which recorded dip in the inflows in the last fiscal include construction (infrastructure) activities, and metallurgical industries.
However, the inflows have recorded growth in sectors including services ($8.7 billion), trading ($4.8 billion), telecommunications ($713 million), pharma ($8.7 billion), 2 billion), and chemicals ($1.85 billion). State-wise, though Maharashtra received the highest inflows of $14.8 billion during the last financial year, the inflows are down as compared to $15.44 billion in 2021-22. Similarly the overseas inflows in Karnataka plunged to $10.42 billion in 2022-23 as against $22 billion in 2021-22. Other states/UTs where FDI dipped in 2022-23 include Delhi, Tamil Nadu, Haryana, Telangana, and West Bengal. On the other hand, FDI in Gujarat has increased to $4.71 billion in 2022-23 as against $2.7 billion in 2021-22. FDI has also reported positive growth in Rajasthan. The FDI equity inflows declined in January, February and March in the last fiscal. (PTI)