CURRENT AFFAIRS: BANKING AND FINANCE
FDI shrinks 7.8% in second quarter of FY24
- FDI equity inflows contracted 7.7% to $9.5 billion in the July-September quarter of FY24.
- Data released by the Department for Promotion of Industry and Internal Trade (DPIIT) showed this contraction in FDI inflow.
- Foreign direct investment (FDI) equity inflows stood at $10.3 billion a year ago.
- Total FDI into India declined 7.8% on-year to $15.3 billion in the July-September quarter of FY24 from $16.6 billion a year ago.
- The total FDI includes equity inflows, reinvested earnings and other capita.
Key Highlights
- According to the data, the equity inflows declined 24% on-year in H1 of FY24 at $20.4 billion.
- Singapore was the top source of equity inflows.
- It was followed by Mauritius,US, UK,UAE.
- The inflows declined12.8% from the quarter ended June 30, 2023.
- Foreign investments declined in April, May, June, July and August but increased in September.
- Tax havens like the Cayman Islands and Cyprus were among the top 10 sources of overseas investments for India.
- Services sector received the highest inflows of $3.8 billion in the first half.
- It was followed by construction (infrastructure) activities, and the computer software and hardware sectors at $2.4 billion each.
- Among the states, Maharashtra got the highest inflow of $7.9 billion in April-September 2023-24. Karnataka followed Maharashtra.
