Foreign direct investment Drops Nearly 7% To $33.5 Billion In April-December

Foreign direct investment (FDI) contracted 7 per cent to $33.49 billion in the first nine months of the current financial year, according to Commerce and Industry Ministry data. Foreign fund inflows in the April-December period in 2017-18 had stood at $35.94 billion.

The key sectors that received the maximum foreign investment during the nine months of the fiscal year include services ($5.91 billion), computer software and hardware ($4.75 billion), telecommunications ($2.29 billion), trading ($2.33 billion), chemicals ($6.05 billion), and the automobile industry ($1.81 billion).

Singapore was the largest source of FDI during April-December 2018-19 with an inflow of $12.97 billion, followed by Mauritius ($6 billion), the Netherlands ($2.95 billion), Japan ($2.21 billion), the United States ($2.34 billion), and the United Kingdom ($1.05 billion).

A decline in foreign inflows could put pressure on the country's balance of payments and may also impact the value of the rupee.

-PTI