look news india
Foreign direct investment (FDI) inflows into India grew by about 26.4 per cent to $22.4 billion in the April-June, 2024 quarter. This increase in FDI is the highest in the last five quarters. While there has been a significant increase in investment flows in other countries, there has also been a significant increase in foreign investment in India.
FDI inflows to India increased in the first quarter of the current financial year, although FDI has declined in the last two financial years due to weak global sentiment. According to recently released RBI data, FDI inflows grew by 37.6 per cent in June, which is lower than the 49 per cent growth recorded in May.
According to RBI data, 80 per cent of the total FDI inflows have been in the energy sector including manufacturing, financial services, communication services, computer services and electricity. Countries like Singapore, Mauritius, Netherlands, USA and Belgium have contributed significantly to the total FDI.
Based on a detailed study of the data, it has been found that equity investment in the country is largely responsible for the increase in FDI. Investment in equity increased by 46 percent to $ 16.5 billion during the same quarter. Thus, the increase in FDI flow coming to India is benefiting India in attracting investors who want to invest in other countries instead of China to reduce their risk. In the first six months of 2024, FDI inflows worldwide totaled $635 billion. This is the highest FDI inflow in the first six months of any year since 2003. Renewables, semiconductors and communications accounted for 50 percent of the investment in the first six months.
