FDI Inflow Falls 22% from 2022 to 2023 Computer Software & Hardware Leads All Sectors in Comparison to Last Year
According to information provided by the Union Commerce Ministry, the amount of Foreign Direct Investments (FDIs) entering India decreased by 22% in the years 2022–2023. India got $46,034 million, or Rs 3,67,435 crore, in the most recent fiscal year, compared to $58,773 million, or Rs 4,37,188 crore, in 2021–22.
According to the ministry’s Department for Promotion of Industry and Internal Trade, the FDI statistics solely pertains to investments made as equity and not in any other form.
The maximum FDI of $6459 million was received in April 2022, and $6152 million was received in May. All subsequent months’ FDI inflows fell short of $5000 million, with March 2023 recording the lowest FDI inflow of at $2382 million.
In the most recent fiscal year, the computer software and hardware industry in India got the most foreign direct investment ($9,394 million), followed by the services sector ($8,707 million).
Maharashtra got 29% of the FDIs among the states, followed by Karnataka with 24%. FDI in Gujarat, on the other hand, climbed to $4.71 billion in 2022–23 from $2.7 billion in 2021–22. Rajasthan has seen FDI report strong growth as well. In the previous fiscal, FDI equity inflows decreased in January, February, and March.
Among all national investments, FDI via Singapore was at its highest level. Singapore contributed a total of $17,203 million, while Mauritius contributed $6,134 million.
Inflows of FDI from Mauritius, the US, the Netherlands, the Cayman Islands, and Germany decreased in 2022–2023.
Even though the computer software and hardware business brought in the most money ($9.4 billion) during the most recent fiscal year, this is a decrease from the $14.5 billion in 2021–2022.
In the previous fiscal year, Tamil Nadu got $2169 million as opposed to $3003 million. With Maharashtra ($14806 million), Karnataka ($10,429 million), Gujarat ($4,714 million), and Delhi (with $7534 million), it ranks sixth in luring foreign investment.
Officials from the Tamil Nadu government claim that the numbers may not accurately represent the investments taking place in the state. According to a representative of the RBI, “many companies with headquarters in locations like the Delhi-NCR Region and Mumbai that are investing in Tamil Nadu, get recorded at the local regional office of RBI.”
“Investments were impacted by the prolonged lockdown that lasted for almost a quarter of the previous fiscal year, and the assembly elections added to that. The government was in election gear in 2021 as we had assembly elections. The official said that this had an impact on investments in Tamil Nadu.
