Government data shows that between April and June 2023, foreign direct investment (FDI) into India fell 34% to USD 10.94 billion, mostly due to reduced inflows into the computer hardware and software, telecom, auto, and pharmaceutical industries.
From April to June of 2022–2023 FDI inflows were USD 16.58 billion. Additionally, inflows fell by 40.55 per cent to USD 9.28 billion between January and March of 2023.
The Department for Promotion of Industry and Internal Trade (DPIIT) released data indicating that foreign investments decreased to USD 5.1 billion, 2.67 billion and 3.16 billion in April, May, and June of this fiscal year, compared to USD 6.46 billion, 6.15 billion and 3.98 billion in the corresponding periods last year.
Total FDI, which includes equity inflows, reinvested earnings and other capital, contracted 21.4 per cent to USD 17.56 billion during the period under review as against USD 22.34 billion in April-June 2022.
During the quarter, FDI equity inflows decreased from major countries including Singapore, Mauritius, the US, UK, and UAE.
Cayman Islands and Cyprus saw a sharp decline in investments from April to June 2023, falling to USD 75 million and USD 6 million respectively from USD 450 million and USD 605 million in the same time the previous year.