Foreign direct investment (FDI) into India declined by 34 per cent to $10.94 billion during April-June 2023-24, dragged by lower inflows in computer hardware and software, telecom, auto and pharmaceutical sectors, according to government data. 

FDI inflows had stood at $16.58 billion during April-June 2022-23. Inflows during January-March 2023 too had contracted by 40.55 per cent to $9.28 billion. 

Investments from overseas fell in April, May and June this financial year to $5.1 billion, $2.67 billion and $3.16 billion respectively as against $6.46 billion, $6.15 billion and $3.98 billion in the year-ago corresponding periods, the data from Department for Promotion of Industry and Internal Trade (DPIIT) showed. 

Total FDI, which includes equity inflows, reinvested earnings and other capital, contracted by 21.4 per cent to $17.56 billion during the period under review as against $22.34 billion in April-June 2022. 

During the quarter, FDI equity inflows decreased from major countries, including Singapore, Mauritius, the US, the UK and the UAE. 

Investments dipped significantly from Cayman Islands and Cyprus to $75 million and $6 million during April-June 2023 as against $450 million and $605 million respectively in the year-ago period. 

DPIIT Secretary Rajesh Kumar Singh had in May stated that hardening interest rates globally and worsening geopolitical situation had impacted FDI inflows into India in 2022-23. 

FDI equity inflows into India had declined by 22 per cent to $46 billion in 2022-23.