What is the current state of foreign direct investment (FDI) in India and how has it evolved over the years?
What is the current state of foreign direct investment (FDI) in India and how has it evolved over the years?
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Foreign direct investment (FDI) in India has been on a steady rise in recent years, reaching an all-time high of $84.84 billion in 2021-22. This was a significant increase from the previous year's figure of $64.36 billion. The main drivers of FDI into India include: The country's large and growing mRead more
Foreign direct investment (FDI) in India has been on a steady rise in recent years, reaching an all-time high of $84.84 billion in 2021-22. This was a significant increase from the previous year’s figure of $64.36 billion.
The main drivers of FDI into India include:
However, FDI into India did decline in 2022-23, falling to $71 billion. This was the first time in a decade that FDI inflows had fallen. The decline was attributed to a number of factors, including:
Despite the decline in FDI in 2022-23, the long-term trend for FDI in India is positive. The country’s large and growing market, pro-business policies, and skilled workforce will continue to attract foreign investors in the years to come.
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