India’s Foreign Direct Investment (FDI) inflows dipped in Financial Year (FY) 2023-24: DPIIT | Current Affairs | Vision IAS
News Today Logo

    India’s Foreign Direct Investment (FDI) inflows dipped in Financial Year (FY) 2023-24: DPIIT

    Posted 01 Jun 2024

    2 min read

    • As per data released by Department for Promotion of Industry and Internal Trade (DPIIT), FDI inflows in 2023-24 contracts by 3.49% to $44.42 billion as compared with 2022-23.

    Other Key Highlights 

    • Maharashtra received highest FDI followed by Gujarat and Karnataka in FY 2023-24.
    • Singapore was the top source of foreign inflows followed by Mauritius and USA in FY 2023-24.
      • Top 5 countries for FDI equity inflows into India during 2000-24 are Mauritius followed by Singapore, USA, Netherland, Japan.
    • Computer software & Hardware, followed by Service sector and Construction Activities received highest FDI in FY 2023-24
      • Top 5 sectors receiving highest FDI equity inflow during 2000-2024 are Services Sector, Computer Software & Hardware, Trading, Telecommunications, Automobile Industry.

    About FDI

    • It is an investment made by a company or an individual in one country into business interests located in another country.
    • DPIIT is nodal Department for formulation of FDI policy in India.
    • FDI is permitted through Automatic route (Government approval not required) or Government route (approval required).
    • Foreign Currency Convertible Bonds, Foreign Institutional Investment with certain conditions and Global Depository Receipts are included in FDI.
    • FDI is prohibited in Lottery Business, Gambling and Betting, Chit funds, Nidhi company, Trading in Transferable Development Rights etc.

    Significance of FDI

    • Stimulates economic growth, enables development in backward areas, ensures exchange rate stability, etc. 

    Concerns regarding FDI in India

    • Most FDI inflow is concentrated in few states like Maharashtra & Karnataka, widening existing inequalities
    • FDI may lead to unfair competition and ultimately affect domestic companies.

    Initiatives taken to promote FDI

    • Liberalization of FDI in sectors like Insurance, Power exchanges etc.
    • Investment promotion and facilitation through Invest India Programme.
    • Attracting foreign investment through Make in India.
    • Tags :
    • Foreign Direct Investment (FDI)
    • Make in India
    • Foreign Institutional Investment
    Watch News Today
    Subscribe for Premium Features