Inward FDI has also been sluggish. Net FDI into India sharply declined to $2.99 billion in the April-August period of fiscal 2023-24—down from $18.03 billion in the same period of the last fiscal—due to a moderation in global investment activity and a rise in repatriation.

Economic and business slowdown, especially in developed markets, has affected direct investment flows, both inbound and outbound.

In the outbound FDI, equity commitments rose to $865.28 million in October this year from $485.08 million in September, but significantly lower than the $1.42 billion recorded in the same month last year.

Debt commitments fell to $245.81 million in October, down from $510.29 million in September, and lower compared to $515.56 billion in October 2022.

Guarantees for overseas units declined to $774.19 million in October from $1.14 billion in September. However, they were slightly higher compared to $721.43 million a year ago.

Fibre2Fashion News Desk (DS)