The inflow of Foreign Direct Investments (FDIs) into India declined in the year 2022-23 by 22 per cent as per data released by the Union commerce ministry. In the last financial year, India received a total of $46,034 million which translates to Rs 3,67,435 crore compared to $58,773million or Rs 4,37,188 crore in 2021-22.
The Department for Promotion of Industry and Internal Trade attached to the ministry said the FDI data is only about investments as equity and not otherwise.
April 2022 received the maximum FDI of $6459 million and May received $6152 million. In all other months, the FDI inflow did not cross $5000 million — worst being March 2023 when only $2382 million was received as FDI.
Among the sections of the Indian economy, computer software and hardware sector received the maximum FDI of $9,394 million in the last financial year followed by services sector which received $8,707 million.
Among states, Maharashtra received 29 per cent of the FDIs followed by Karnataka with 24 per cent. On the other hand, FDI in Gujarat has increased to $4.71 billion in 2022-23 as against $2.7 billion in 2021-22. FDI has also reported positive growth in Rajasthan. The FDI equity inflows declined in January, February and March in the last fiscal.
FDI’s flow through Singapore was the maximum among country’s investment. A total of $17,203million was received from Singapore followed by Mauritius at $6,134 million.
The FDI inflows have contracted in 2022-23 from Mauritius, the US, the Netherlands, the Cayman Islands, and Germany.
Though the computer software and hardware sector attracted the highest inflows of $9.4 billion during the last financial year, these inflows are down as compared to $14.5 billion in 2021-22.
Tamil Nadu received $2169 million in the previous financial year compared to $3,003 million. It is at the fifth place in wooing foreign investments with Maharashtra ($14806 million), Karnataka ($10,429 million), Gujarat ($4,714 million) and Delhi (with $7534 million).
Tamil Nadu government officials say the data might not be a correct reflection of the investments happening in the state. “Many companies headquartered in places like the Delhi-NCR Region and Mumbai that are investing in Tamil Nadu, get recorded at the local regional office of RBI,” an official contended.
“The intense lockdown for nearly one quarter of the last financial year affected investments and coupled with that is the assembly elections. In 2021, we had assembly elections and the government was in election mode. This affected investments in Tamil Nadu,” said the official.
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