Net FDI nearly doubles to $6.2 bn in India in April-October period
Net foreign direct investment (FDI) in India nearly doubled to $6.2 billion during April?October from $3.3 billion a year earlier, primarily due to fall in repatriation of foreign capital despite a rise in outward FDI, an official statement has said.
The RBI’s December Monthly Bulletin said gross inward FDI rose marginally to $58.3 billion in April?October from $50.5 billion a year ago, and remained steady in October with Singapore, Mauritius and the United States accounting for over 70 per cent of total inflows.
Repatriation or the amount of foreign capital leaving India fell to $31.65 billion from $33.2 billion during the same period, while outward FDI rose to $20.5 billion from $14.06 billion, the statement said.
The bulletin noted that the financial sector received the highest share of FDI at 60 per cent, followed by manufacturing, electricity and communication services.
“The key destinations for outward FDI were Singapore, followed by the US and United Arab Emirates, together accounting for over half of total outward FDI. Sector-specific breakdown suggests that around 90 per cent of outward FDI was in financial, insurance, and business services, followed by wholesale, retail trade and manufacturing,” the report said.
Net FDI was, however, negative in October (-$1.5 billion), mainly on account of high repatriation and outward FDI. Repatriation in October was nearly $5 billion versus $5.4 billion a year earlier, while outward FDI rose to $3.90 billion from $1.89 billion, the report said.
The rupee depreciated against the US dollar in November, weighed down by gains of US dollar, muted foreign portfolio flows, and uncertainty surrounding the India-US trade deal.
The RBI's note further said that high?frequency indicators for November showed economic activity has held up, with services continuing strong expansion, while manufacturing showed signs of deceleration.
Private consumption growth was sustained by robust rural demand and easing inflationary pressures, though net exports remained a drag on growth, it said.
