India's FDI Inflows Drop 43% to $28 billion in 2023, Slips to 15th in World Investment Ranking

India's foreign direct investment (FDI) inflows have seen a sharp decline of 43% in 2023, reaching $28 billion, according to a report by the United Nations Conference on Trade and Development (UNCTAD). This drastic drop has caused India to fall seven places to 15th in the World Investment Ranking.

The decline is part of a global trend, with worldwide FDI falling 2% amidst economic slowdown and geopolitical tensions. While the US maintained its top position, followed by China, India's decline was particularly significant.

Despite this setback, India remains a key destination for greenfield projects and international project finance deals, ranking fourth and second respectively. The country also saw an increase in outward FDI, rising to 20th in the global rankings.

The UNCTAD report attributes the decline to various factors, including the global economic slowdown, geopolitical tensions, and domestic challenges. However, it suggests that modest growth is possible in 2024 due to easing financial conditions and ongoing efforts to facilitate investment.

India's policy initiatives, such as liberalization measures and focus on sustainable finance, are also highlighted in the report. While the immediate outlook remains challenging, these efforts could contribute to a potential rebound in FDI inflows in the future.

RANK in 2023	Country	FDI inflows 2022 (Billion dollars)	FDI inflows 2023 (Billion dollars)
1	US (1)	332	311
2	China(2)	189	163
3	Singapore (3)	141	160
4	Hong Kong, China (4)	110	113
5	Brazil (6)	73	66
6	Canada (9)	46	50
7	France (5)	76	42
8	Germany (17)	27	37
9	Mexico (12)	36	36
10	Spain (10)	45	36
15	India (8)	49	28

 

[Santosh1976]

India remains second largest investor in the UK as enhanced trade agreement progresses​

India has remained the second largest investor in the UK for another year as revealed in the UK’s Department for International Trade Foreign Direct Investment (FDI) 2021/22 figures. 🍵 This year saw 107 Indian sourced FDI projects that successfully landed in the UK between financial year 2021-22, which included new investments, mergers & acquisitions, and expansions. These projects created 8,664 new jobs in the UK.

India’s overall contribution to the UK economy is considerable and current trade between the UK and India is worth around £25 billion. In July 2022, the UK and India signed an agreement to officially recognise each other’s higher education qualifications. This will enhance opportunities for Indian nationals to study and work in the UK, with 2020/21 already welcoming almost 85,000 Indian students. This deal is one of several that has shown positive progress towards the final stages of the Enhance Trade Agreement between the UK and India. This is a series of commitments which will create further opportunities and collaboration between the two countries.

Moore Kingston Smith’s India Group has advised many businesses looking to invest in the UK and we are in discussion with many looking to set up in the coming year. Despite the pandemic, we are pleased to see that India has remained high on this year’s UK FDI rankings and expect this to continue. 👍

India remains second largest investor in the UK as enhanced trade agreement progresses

India remains the second largest investor in the UK as revealed by the Department for International Trade Foreign Direct Investment.

mooreks.co.uk

 

[Santosh1976]

List of ethnic groups in the United States by household income - Wikipedia

en.wikipedia.org

 

[Santosh1976]

India's outward FDI rises to $3.7 billion in October 2024: RBI data​

India’s outward foreign direct investment (FDI) commitments rose to $3.24 billion in October 2024, up from $2.55 billion in October 2023. 🍵

https://www.business-standard.com/economy/news/india-s-outward-fdi-rises-to-3-7-billion-in-october-2024-rbi-data-124111301837_1.html

 

[Santosh1976]

A comprehensive analysis of the top five verticals of Indian industry that contributed to the US economy during the period 2004-07, the study highlights that Indian industry contributed US$ 105 billion to the US economy and created 300,000 jobs during the period through evolution across the value chain—from delivering services to product innovation and process innovation.

IBEF study: Indian industry, US economy share symbiotic relationship
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the above news states the investment in USA in just 3 years, 🍵