FDI equity inflows in April-September plummet by 24%, totaling $20.4 billion year-on-year. This decline encompasses various sectors, notably services, computer software, and hardware, with significant drops observed in these segments.
Services, including finance and business outsourcing, experienced a dip from $4.1 billion to $3.8 billion in Apr-Sep this year. Inflows into computer software and hardware drastically reduced to $920 million from $3.2 billion, while trading fell to $525 million from $4.7 billion.
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After a surge in FY 2021-22, reaching $58 billion, FY 23 saw a decline in overseas equity investments, dropping back to $46 billion, reminiscent of previous years' levels.
Singapore emerged as the primary source for FDI in the April-September period, accounting for around $5.2 billion, followed by Mauritius at $2.9 billion, Japan at $2.09 billion, and the US at $2.05 billion.
This downturn follows a substantial decline in exports during April-June, down 34% to $10.9 billion, contributing to the overarching economic challenges."