Consider the following statements with respect to the data provided by the Department for Promotion of Industry and Internal Trade regarding the FDI flows of India-

I.According to the data provided by the Department for Promotion of Industry and Internal Trade (DPIIT), foreign direct equity investments into India fell by 24 per cent to $20.5 billion during the first six months of the financial year 2023-24 in comparison to a year earlier.

II.  Singapore emerged as the top investor with $5.22 billion FDI during April-September.

III.As far as sectors are concerned,construction (infrastructure) activities, construction development and the metallurgical industry registered decline in inflows.

Which of the following statements is/are true? 

Solution

According to the data provided by the Department for Promotion of Industry and Internal Trade (DPIIT), foreign direct equity investments into India fell by 24 per cent to $20.5 billion during the first six months of the financial year 2023-24 in comparison to a year earlier.  Total FDI, which includes equity capital of unincorporated bodies, reinvest earnings and other capital, contracted 15.5 per cent to $32.9 billion during the period under review. During the six months of this financial year, FDI equity inflows decreased from major countries, including Singapore, Mauritius, the United States, the United Kingdom and the United Arab Emirates.    Inflows increased from the Netherlands, Japan and Germany. Singapore emerged as the top investor with $5.22 billion FDI during April-September.      This was followed by investments from countries such as Mauritius ($2.95 billion), Japan ($2.09 billion), the US ($2.05 billion), The Netherlands ($1.92 billion) the UAE ($1.19 billion), the UK ($638 million), Cyprus ($35 million), Cayman Islands ($772 million) and Germany ($238 million), among top 10 investing countries’ FDI equity inflows. As far as sectors are concerned, inflows contracted in computer software and hardware, trading, services, telecommunication, automobile, pharma and chemicals. However, construction (infrastructure) activities, construction development and the metallurgical industry registered growth in inflows.  With respect to states, though Maharashtra received the highest inflow of $7.95 billion during the period, it was lower as compared to $8 billion inflows during the same period last year.