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The Department for Promotion of Industry and Internal Trade (DPIIT) in its latest data has showed that foreign direct investment (FDI) inflows in India declined 13 per cent to $32.03 billion in April-December 2023, dragged down by lower infusion in computer hardware and software, telecom, auto, and pharma sectors. FDI inflows stood at $36.74 billion during the corresponding nine months of the preceding fiscal.

The total FDI -- which includes equity inflows, reinvested earnings and other capital -- declined by about 7 per cent to $51.5 billion during April-December 2023 as against $55.27 billion in April-December 2022.  However, during the October-December quarter of the current fiscal (Q3FY24), FDI inflows rose by 18 per cent to $11.6 billion as against $9.83 billion during the same quarter of 2022-23. 

During the nine-month period of this fiscal, FDI equity inflows decreased from major countries, including Singapore, the US, the UK, Cyprus and the UAE. Investments fell significantly from the Cayman Islands and Cyprus to $215 million and $796 million, respectively, during April-December 2023 as against the two comparative figures of $624 million and $1.15 billion recorded in the year-ago period. However, inflows increased from Mauritius, the Netherlands, Japan and Germany. Sectorally, inflows contracted in computer software and hardware, trading, services, telecommunication, automobile, pharma and chemicals. In contrast, construction (infrastructure) activities, development and power sectors registered growth in inflows.