Company News

India Sees 40% Rise in September FDI Inflows

Bucking a three-month trend of declining foreign direct investment inflows, India received US$2.11 billion in FDI in September, good for a 40 percent rise over the same month last year, according to an official from the industry ministry.

Mauritius, the United States, the United Kingdom, Singapore, the Netherlands and Japan made the most significant contributions, investing in key sectors including construction, computer software and hardware, services, and telecommunication.

From April to September this fiscal, FDI inflows are down about 28 percent to US$11 billion compared US$15.3 billion over the same period last year. FDI into India in August was down roughly 60 percent year-on-year to US$1.33 billion, July was down 49 percent to US$1.78 billion and June was down 46 percent to US$1.38 billion.

Some experts believe the lower FDI figures are a result of western nations failing to rebound from the recent economic crisis.

“Sluggish recovery in the major western economies is one of the reasons for declining FDI in India,” said Rakesh Mohan Joshi, a trade expert at the Indian Institute of Foreign Trade.

If the government decides to begin allowing FDI into multi-brand retail and the defense sector, as some suspect in the near future, India could continue to see high FDI inflows in the coming months.


To learn more about how we can support you, contact one of our local experts.

We provide professional services tailored to Asia´s business environment across the full business cycle.

Talk to experts