Foreign direct investment in India surged 64% in October to $8.4 billion, the highest in 18 months, as the global economic environment shows signs of improvement. Inflows increased for three consecutive months, although FDI between April and October 2023 was 6.7% lower compared to the same period last year. The government is actively attracting investors and positioning India as an attractive destination for companies looking to diversify their manufacturing bases. The government has been urging companies like Apple and Tesla to invest in India and is offering production-linked incentives to attract domestic and global investors. Representative photo NEW DELHI: Foreign direct investment jumped 64% in October to $8.4 billion — the highest in 18 months — as the bleak global economic environment shows some signs of improvement amid moderating inflation and a pause in interest rate hikes by central banks . Latest data released by RBI showed that on a gross basis, inflows increased for three months in a row, although between April and October 2023, FDI flowing into the country was estimated to be 6.7% lower at $41.5 billion, as against $44.5 billion in the corresponding period last year. The fall has come at a time when the government is courting investors, positioning India as an attractive destination for companies from the US, Europe and Japan that are looking to diversify their manufacturing bases beyond China. The government has blamed the weak global sentiment and the geo-political risks for falling FDI. The government has been pushing companies such as Apple and Tesla to invest in India and is offering schemes such as production-linked incentives to woo domestic and global investors to cater to the domestic and export markets. The numbers in October come on the back of a 20% increase in September and mark the first time since May 2022 when inflows topped $8 billion. On the gross side, the inflows were bolstered by a $3.6 billion worth acquisition of shares, while inflows via the RBI route hovered around the $2.5 billion mark. Reinvested earnings remained unchanged at $1.7 billion. October also saw repatriation or disinvestment of $1.1 billion in October, sharply lower than the $2.9 billion a year ago. Earlier this month, UN ESCAP said that for the second year in a row, India was the highest recipient of FDI, which was $68 billion, down 4% from 2022, driven by greenfield investments. “India has seen several mega deals in 2023 across sectors including communications, semiconductors, automotive OEM, software, biomass power and more from companies including NTT, Micron Technology, Hyundai, Suzuki, Microsoft and others,” it said. In a recent report, OECD said that in the first half of 2023, FDI flows globally rebounded to $727 billion from very low levels recorded in the second half of 2022 but remained 30% below the level recorded in the first semester of 2022. The report noted that inflows have been hit by weak M&A activity, while capex has been holding up. “The US, India, Mauritania, the UK, and Brazil received the most significant projects,” the OECD report had said. FOLLOW US ON SOCIAL MEDIA Visual Stories Previous 10 Most Affordable Cities in India to Buy a House business Most Visited Monuments in India business The Pros and Cons of Investing in Value Stocks business Investing in Small-Cap Stocks: Top 10 Tips for Absolute Beginners business 10 Ways to Earn Money Online by Selling Physical Products business Richest Cricket Players Across the World business 10 Things You Didn’t Know About Warren Buffett’s Investment Process business Priyanka Chopra Net Worth: Know How Rich is Global Actress business Top 10 Benefits of Investing in Small-Cap Stocks business 15 Best Tax Saving Schemes in India business Next 1 2 3 Elections Chhattisgarh CM News MP CM News Rajasthan Election Results MP Election Result 2023 Chhattisgarh Election Result Mizoram Election Result TOP TRENDS India Covid Cases Paytm Layoffs 2023 New ITR Forms Merry Christmas Wishes Virat Kohli Dhirubhai Ambani International School

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