October saw net FDI in India hit a 21-month high of $5.9 billion

 October saw net FDI in India hit a 21-month high of $5.9 billion

October saw net FDI in India hit a 21-month high of $5.9 billion

According to RBI statistics, India's outbound FDI commitments were $1.55 billion in November compared to $3.67 billion in the same month last year and $1.93 billion in October 2023.

In October 2023, net foreign direct investment (FDI) in India hit a 21-month high. Strong gross inflows and less repatriations were credited with the rise, according to Reserve Bank of India (RBI) figures.

In October, net foreign direct investment (FDI) in India was $5.9 billion, as per RBI statistics. Compared to the statistics for September 2023, which were $1.55 billion, and October 2022, which were $1.17 billion, this represented a huge rise.

Approximately four-fifths of total inbound FDI equity flows into India, according to the RBI bulletin, went into industries including manufacturing, wholesale and retail commerce, electricity and other energy sectors, and financial services.

The main sources of foreign direct investment (FDI) entering India in October 2023 were Japan, Singapore, Mauritius, and Cyprus. Over four-fifths of all FDI inflows during that month came from these five nations combined.

The statistics for fiscal year 2023–24 (April–October) revealed a decrease in net foreign direct investment (FDI), at $10.4 billion, in contrast to the encouraging October figures. Compared to the same time in the prior fiscal year, when net foreign direct investment was reported at $20.8 billion, this represented a decline.

Compared to the previous year, net inflows under Non-Resident Deposit accounts and External Commercial Borrowings (ECB) are much higher. Over the taper tantrum period, India's external vulnerability indicators show more resilience than those of its EME rivals.

In November, India's outbound FDI pledges fell by 19.6% on a monthly basis and by over 58% on an annual basis.

According to RBI statistics, India's outbound FDI commitments were $1.55 billion in November compared to $3.67 billion in the same month last year and $1.93 billion in October 2023.

Outward FDI is defined as a financial commitment made up of three parts: loan, guarantees, and equity.

Equity commitments dropped from $870.37 million in October 2023 to $729.57 million in November 2023, and then reached $1.69 billion in November 2022, according to the statistics.

Loan commitments also decreased, from $250.42 million in October as well as $300.58 million in November 2022 to $184.96 million in November.

From $809.26 million in October to $637.26 million in November, guarantee given to overseas units decreased. It had dropped precipitously to $1.68 billion a year earlier.