Foreign direct investment (FDI) equity inflows in India declined 24 per cent to $ 20.48 billion in April-September 2023, dragged by lower inflows in computer hardware and software, telecom, auto and pharma, according to government data.

       FDI inflows stood at $ 26.91 billion during the first six months of the last fiscal.

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       Inflows during January-March 2023 also contracted 40.55 per cent to $ 9.28 billion. During April-June last year, it declined 34 per cent to $ 10.94 billion.

       Investments from overseas fell in April, May, June, July and August.

       However, in September, it rose to $ 4.08 billion compared to $ 2.97 billion in the same month last year, the data from the Department for Promotion of Industry and Internal Trade (DPIIT) showed.

       The total FDI -- which includes equity inflows, reinvested earnings and other capital -- contracted 15.5 per cent to $ 32.9 billion during the period under review against $ 38.94 billion in April-June 2022.

       During the six months of this fiscal, FDI equity inflows decreased from major countries, including Singapore, Mauritius, the US, the UK, and UAE.

       Investments fell significantly from the Cayman Islands and Cyprus to $ 145 million and $ 35 million, respectively, during April-September 2023 against $ 582 million and $ 764 million in the year-ago period.

       However, inflows increased from the Netherlands, Japan and Germany.

       Sectorally, inflows contracted in computer software and hardware, trading, services, telecommunication, automobile, pharma and chemicals.

       However, construction (infrastructure) activities, construction development and the metallurgical industry registered growth in inflows.

       State-wise, though Maharashtra received the highest inflow of $ 7.95 billion during the period, it was down compared to $ 8 billion in the same period last year.

       Similarly, overseas inflows in Karnataka plunged to $ 2.84 billion in April-September 2023 from $ 5.32 billion in the same period last year. Other states/UTs where FDI dipped in the quarter include Gujarat, Rajasthan, Delhi, Tamil Nadu, and Haryana.

       On the other hand, FDI in Telangana, Jharkhand, and West Bengal reported growth during the period.

       An official stated that hardening interest rates globally and worsening geo-political situation impacted FDI inflows into India in 2022-23.

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       (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)