Remaining on the higher plane, Reserve Bank of India has reported a rise in net FDI inflows during April to July FY25, which owes its origin to the growth of gross FDI inflows. The gross inward FDI was up 23.6 percent for the April-July period year-over-year at $27.7 billion compared with $22.4 billion in the same period the previous fiscal.
As per the latest bulletin of RBI, the net FDI for this period hiked to $5.5 billion compared to $3.8 billion for the same period of last year. The data of repatriation and divestment by foreign investors in India to the central bank increased to $15.9 billion for the first four months of FY25 as compared to $14.7 billion a year back.
According to the RBI, more than three-fourths of the FDI inflows came from major source countries such as Singapore, Mauritius, the Netherlands, the US, Belgium, and Japan.
The overall non-resident deposits witnessed net inflows amounting to $5.8 billion during April-July 2024 at a strong growth level from a net inflow of $3 billion in the previous year with higher inflows in all three types of accounts.
Manufacturing, financial services, communication services, computer services, electricity, and other energy sectors also constituted over three-fourths of the gross FDI inflows.
According to RBI's report on the state of the economy, net FDI flow had fallen sharply to $9.8 billion in FY24 from $28 billion in the previous fiscal year. The country had net FDI inflows at $38.6 billion in FY22.
Net foreign portfolio investment also posted a $4.3 billion inflow in August, and netting to three consecutive months of net inflows.
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