India's net Foreign Direct Investment (FDI) witnessed a significant decline, dropping to $2.99 billion in April-August 2023 from $18.03 billion during the same period in 2022. This decline is attributed to a global slowdown in investment activity and an increase in repatriation. FDI into India for 2023 stood at $7.28 billion, while Indian investments abroad were $4.28 billion.
In comparison, the figures for April-August 2022 were $22.79 billion and $4.76 billion, respectively. The data also reveals a rise in repatriation/disinvestment, growing from $11.41 billion in April-August 2022 to $19.63 billion in the same period in FY24. The RBI highlights that global foreign direct investment flows are slowing down, partly due to a downturn in mergers and acquisitions.