Mumbai, Aug 24 :
Foreign direct investment inflows into India have fallen sharply from $23.47 billion in 2011-12 to $18.29 billion in 2012-13 and further to $16.05 billion in 2013-14, latest Reserve Bank of India data shows.
The statistics further reveals that Singapore, interestingly, has now overtaken Mauritius as the largest source of foreign equity inflows into India.
Such inflows from the South East Asian city-nation amounted to $4.42 billion in 2013-14, compared to $3.69 billion from Mauritius. Inflows from Mauritius, in fact, have fallen sharply — from $9.8 billion in 2009-10 to 3.39 billion last fiscal.
According to the Department of Industrial Policy and Promotion (DIPP) the country has received $22.5 billion in equity inflows during fiscal 2012-13, as compared to $36.5 billion that came in the previous financial year, registering a decline of about 38 percent. FDI inflows, that had seen a robust growth of 88 percent in the fiscal 2011-12, once again experienced a downturn due to uncertainties in the global economy and economic slowdown in India on the one hand, and the lack of political consensus on FDI issues on the other.
DIPP data shows cumulative FDI inflows (including equity inflows, re-invested earnings and other capital) of $331.923 billion during the period April 2000-May 2014.
During the last financial year 2012-13, two sectors defied the overall investment trend and posted very strong growths in investment inflows – the hotel and tourism industry, which attracted $3.3 billion, registering a growth of 228 percent and inflows into the automobile sector which grew 66.5 percent or by $1.5 billion.
According to a UNCTAD report, although foreign investment continues to flow into single brand retail, no new projects have been recorded in multi brand retail.
Since economic liberalization began in 1991, Britain’s contribution stood at $1.76 billion, accounting for 8.7 percent of total investments into India. The US has the 4th highest investment figures amounting to $1.35 billion, with a share of 6.7 percent. Japan follows in 5th position with investments to the tune of US $ 1.14 billion and a share of 5.6 percent.
These top five investing countries took up nearly 69 percent of total investments in India post-liberalization.