The flow of foreign investment in the new financial year shows a good trend. The latest figures show that during the first quarter of the current financial year, there was a spectacular increase of about 48 percent in foreign direct investment in India, which crossed $16 billion.
This Much Foreign Investment Came In The First Quarter
According to the data released by the Department of Promotion of Industry and Internal Trade (DPIIT) on Tuesday, in the first quarter of the financial year 2024-25, i.e., three months from April to June 2024, India received foreign direct investment (equity inflow) of $16.17 billion. This figure is 47.8 percent more than the same period a year ago. During the same period of the previous financial year, i.e., three months from April to June 2023, the FDI inflow was $10.94 billion.
These Sectors Led to FDI
According to DPIIT data, the service, computer, telecom, and pharma sectors led this increase in FDI equity inflow. Suppose we add equity inflow along with reinvestment of earnings and other capital. In that case, the FDI figure in the first quarter of the current financial year increases by 28 percent annually to $22.49 billion.
The Figure Had Fallen In The Last Financial Year
The equity inflow of FDI declined during the last financial year. For the entire financial year, it was $44.42 billion, 3.49 percent less than a year ago, when it was $46.03 billion.
The Highest Investment Came From These Countries
Singapore was India’s top source of FDI, with an investment of $3.9 billion during the first quarter. Mauritius was second with $3.2 billion. FDI increased from the US, Netherlands, United Arab Emirates, Cayman Islands, Cyprus, Singapore, and Mauritius. On the other hand, FDI from Japan, Britain, and Germany declined.
