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India's Net FDI Hits 21-Month High at _____ Billion in October 2023
A)
$5.2
B)
$5.9
C)
$6.5
D)
$7.3

Correct Answer :   $5.9


India's October 2023 FDI Hits 21-Month High at $5.9 Billion, Led by Strong Inflows and Reduced Repatriation. Global Economic Slump Reflects in Cumulative April-October FDI Plunge to $10.43 Billion.

In October 2023, India experienced a surge in net foreign direct investment (FDI), reaching a 21-month high at $5.9 billion. This upswing was attributed to robust gross inflows and a decrease in repatriation. The Reserve Bank of India’s data revealed a notable increase from $1.54 billion in September 2023 and $1.16 billion in October 2022.


Key Points :

* Repatriation Decline : Repatriation, the withdrawal of funds from direct investments in India, dropped to $1.10 billion in October 2023, compared to $3.43 billion in September 2023 and $2.93 billion in October 2022.

* Major Source Countries : Mauritius, Singapore, Cyprus, and Japan emerged as major contributors, accounting for over four-fifths of the total FDI inflows in October 2023.

* Sectoral Inflows : Approximately four-fifths of gross inward FDI equity flows were directed towards manufacturing, retail and wholesale trade, electricity and other energy sectors, and the financial services sector.

* Global Investment Landscape : Despite global economic challenges, emerging economies like India continue to attract investments. The RBI’s ‘State of Economy’ article in the November 2023 bulletin emphasized India’s resilience as an investment destination.



Contrast in Cumulative FDI :

However, the cumulative net FDI for April-October 2023 plummeted by half, reaching $10.43 billion compared to $20.76 billion in the same period of 2022. This downturn is attributed to the worldwide economic slowdown affecting both inbound and outbound investment flows.


Outward FDI Commitments in November 2023 :

India’s outward FDI commitments declined by 19.6% in November 2023 to $1.55 billion. This is in stark contrast to the over $1.93 billion recorded in October 2023 and a significant drop from $3.67 billion in November 2022. The components of outward FDI, including equity, loans, and guarantees, all witnessed notable reductions..

Published On : December 21, 2023
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