FDI equity inflows dip 6% during April-June to $16.6B: DPIIT
Foreign Direct Investment (FDI) equity inflows into India contracted by 6% to $16.59 billion during the April-June quarter this fiscal, according to the data of the Department for Promotion of Industry and Internal Trade (DPIIT).
The inflows had stood at $17.56 billion during the corresponding period of the previous year.
The total FDI inflows (which includes equity inflows, re-invested earnings, and other capital) aggregated at $22.34 billion during the first three months of the current fiscal year as against $22.52 billion in the year-ago period.
Singapore emerged as the top investor during the April-June period with a $5.7 billion FDI. It was followed by Mauritius ($2.4 billion), UAE ($2.2 billion), USA ($ 1.5 billion), Netherland ($ one billion), and Japan ($ 851 million), the data showed.
The computer software and hardware sector attracted the highest inflows of $3.5 billion during the three-month period of this fiscal.
It was followed by services ($2.6 billion), trading ($ 2 billion), chemicals ($960 million), automobile industry ($691 million), and construction (infrastructure) activities ($ 680 million).
Image Source: Shutterstock
In another development, India Inc's foreign direct investment in July declined over 50% to $1.11 billion in July 2022, the Reserve Bank data showed.
As per the RBI data, on Outward Foreign Direct Investment (OFDI), the domestic companies had invested over $2.56 billion in July 2021 in the form of equity, loan, and issuances of guarantees.
In a breakup, the Indian businesses invested $579.15 million by equity infusion, $193.21 million as loans and $337.49 million infused by issuing guarantees to their overseas ventures during July 2022.
Among the major investors included Reliance Industries $160 million in its wholly-owned energy subsidiary in Singapore, Reliance Industrial Investments & Holdings $40.74 million in the fully-owned unit in retail business in the UK, and Ravindra Energy putting $33 million in its fully-owned unit in the UAE.
Hasham Traders invested $32.71 million in a joint venture in the US, which is into financial services.