US alone accounted for 17 percent of FDI in FY’23

2023-09-12 13:49:27

The United States was the largest source of foreign direct investment -FDI – in India in 2022-23, a census of foreign assets and liabilities of firms having both inward and outward liabilities conducted by the Reserve Bank of India showed.

The census results showed that the United states followed by Mauritius, the United Kingdom and Singapore accounted for 60 percent of the inward FDI in the country in 202-23. The FDI in terms of market value amounted to Rs 50 lakh crore in 2022-23.

In case of overseas direct investment – ODI – also, Singapore, the United States and the United Kingdom and the Netherlands were among the top four destinations accounting for 60 percent of the Rs 9.1 lakh crore invested by Indian entities in 2022-23.

During 2022-23, market value of FDI in India increased by 6.9 per cent in rupee terms, primarily due to the rise in FDI in unlisted companies, the findings of the RBI census showed. In terms of market value, ODI growth outpaced the growth in FDI and, as a result, the ratio of inward to outward DI stood at 5.5 times in March 2023 as compared with 6.1 times a year ago and 5.6 times two years ago.

Manufacturing sector continued to attract the largest share of FDI equity, both at market value as well as at face value. Among services, ‘information & communication’ and ‘financial & insurance activities’ were the major FDI recipient sectors.

The Reserve Bank released the provisional results of the 2022-23 round of the annual census on foreign liabilities and assets (FLA) covering cross-border liabilities and assets of the entities (viz., companies, limited liability partnerships (LLPs), alternative investment funds (AIFs) and partnership firms) with inward/outward direct investment (DI).

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