India's FDI Declines By 5.6% In Third Quarter Amid Global Economic Uncertainties

Foreign direct investment in India decreased by 5.6% year-on-year to $10.9 billion in the October-December quarter of this fiscal year, due to global economic uncertainties, according to government data. FDI inflows during October-December 2023-24 were $11.55 billion.

Department for Promotion of Industry and Internal Trade data shows that FDI inflows in the July-September quarter of the current fiscal year increased by approximately 43% year-on-year to $13.6 billion, and they rose by 47.8% annually to $16.17 billion in the preceding April-June quarter.

Cumulatively, from April to December 2024-25, FDI inflows grew by 27% to $40.67 billion, compared to $32 billion during the same period of 2023-24.

Total FDI, which includes equity inflows, reinvested earnings, and other capital, grew by 21.3% to $62.48 billion during the first nine months of this fiscal year, up from $51.5 billion in April-December 2023-24.

During the April-December 2024-25 period, FDI equity inflows rose from major countries, including Singapore ($12 billion against $7.44 billion), the US ($3.73 billion against $2.83 billion), the Netherlands ($4 billion against $2.27 billion), the UAE ($4.14 billion against $2.43 billion), the Cayman Islands ($296 million against $215 million) and Cyprus ($1.18 billion against $796 million).

However, inflows declined from Mauritius, Japan, the UK, and Germany.

Sectorally, inflows rose in services, computer software and hardware, trading, telecommunications, automobiles, and chemicals.

FDI in services has increased to $7.22 billion during the first nine months of the current financial year as against $5.18 billion in the same period last year.

According to the data, FDI inflows in non-conventional energy amounted to $3.5 billion.

Maharashtra received the highest inflow of $16.65 billion during April-December 2024-25, followed by Karnataka with $4.5 billion and Gujarat with approximately $5.56 billion.

(With PTI Inputs)