In the first quarter of the new financial year, India has seen a significant increase in foreign direct investment (FDI). According to the latest data, FDI inflow jumped by nearly 48%, reaching over $16 billion.
Foreign Investment in the First Quarter
The Department for Promotion of Industry and Internal Trade (DPIIT) released data on Tuesday showing that from April to June 2024, India received $16.17 billion in FDI (equity inflow). This figure is 47.8% higher compared to the same period last year, when FDI inflow was $10.94 billion.
Key Sectors Leading FDI Growth
According to DPIIT, the increase in FDI equity inflow was driven by sectors like services, computers, telecom, and pharma. If we include reinvested earnings and other capital, the total FDI in the first quarter of this financial year rises by 28% to $22.49 billion on an annual basis.
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FDI Declined Last Financial Year
In the previous financial year, FDI equity inflow saw a decline. The total FDI equity inflow for the entire year was $44.42 billion, which was 3.49% less than the $46.03 billion received in the year before.
Top Countries for FDI in India
Singapore was the top source of FDI, with $3.9 billion coming in during the first quarter. Mauritius followed with $3.2 billion. Other countries like the USA, Netherlands, United Arab Emirates, Cayman Islands, and Cyprus also saw an increase in FDI. On the other hand, FDI from Japan, the UK, and Germany decreased.
