Which of the following statements is/are CORRECT with respect to the Net FDI flows into India in October 2023?

I.According to Reserve Bank of India data, the net foreign direct investment (FDI) into the country at $5.9 billion rose to a 21-month high in October 2023, primarily due to strong gross inflows and lower repatriation.

II.The major source countries were USA , Singapore, Cyprus and Japan, contributing more than four-fifths of the total FDI inflows in October 2023.

III.Around four-fifths of the gross inward FDI equity flows were received in manufacturing, retail and wholesale trade, electricity and other energy sector, and financial services sector.

Solution

According to Reserve Bank of India data, the net foreign direct investment (FDI) into the country at $5.9 billion rose to a 21-month high in October 2023, primarily due to strong gross inflows and lower repatriation.The repatriation, money taken out from the direct investments made in India, declined to $1.10 billion in October 2023 from $3.43 billion in September 2023 The major source countries were Mauritius, Singapore, Cyprus and Japan, contributing more than four-fifths of the total FDI inflows in October 2023. Around four-fifths of the gross inward FDI equity flows were received in manufacturing, retail and wholesale trade, electricity and other energy sector, and financial services sector.