India's FDI (foreign direct investment) inflows fell for the first time in a decade in the financial year 2022-23, declining by 16% to $71 billion (on a gross basis). This was due to a number of factors, including high inflation and weak demand in the US and Europe, as well as the ongoing COVID-19 pandemic.
Despite the decline, India still remains a attractive destination for FDI, with a number of sectors that are still seeing strong investment interest. The top 3 FDI sectors in India in FY23 were:
- Computer software and hardware
- Services
- Trading
Other major sectors that attracted FDI in FY23 include:
- Automobile
- Chemicals
- Infrastructure
- Telecommunications
- Drugs and pharmaceuticals
The top 5 countries that invested in India in FY23 were:
- Mauritius
- Singapore
- USA
- Netherland
- Japan
The government of India has taken a number of steps to attract FDI, including simplifying the FDI approval process, providing tax incentives, and improving the infrastructure. These measures have helped to make India a more attractive destination for foreign investors.
Here are some of the key facts about India's FDI:
- The total FDI inflows in India in the last 23 years (April 2000 - March 2023) are $ 919 bn.
- The total FDI inflows received in the last 9 years (April 2014- March 2023) was $ 595.25 bn which amounts to nearly 65% of total FDI inflow in last 23 years.
- The highest ever annual FDI inflow of $ 83.57 bn was reported during the FY 2021-22.
- In FY 2022-23, the top 5 states receiving highest FDI Equity Inflow were: Maharashtra, Karnataka, Gujarat, Delhi, and Tamil Nadu.
India is expected to remain an attractive destination for FDI in the coming years, as the country continues to grow its economy and open up its markets to foreign investment.
Sure, here is the data of India's FDI from 2000:
| Year | FDI Inflow (USD billion) |
|---|---|
| 2000 | 3.58 |
| 2001 | 5.13 |
| 2002 | 5.21 |
| 2003 | 3.68 |
| 2004 | 5.43 |
| 2005 | 7.27 |
| 2006 | 20.03 |
| 2007 | 25.23 |
| 2008 | 43.41 |
| 2009 | 35.58 |
| 2010 | 27.40 |
| 2011 | 36.50 |
| 2012 | 24.00 |
| 2013 | 28.15 |
| 2014 | 34.58 |
| 2015 | 44.01 |
| 2016 | 44.46 |
| 2017 | 39.97 |
| 2018 | 42.12 |
| 2019 | 50.61 |
| 2020 | 64.36 |
| 2021 | 44.73 |
| 2022 | 70.97 |
As you can see, India's FDI inflows have been on a steady upward trend since 2000. The highest ever annual FDI inflow of $83.57 billion was reported during the FY 2021-22.
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