Currently, the economic growth of India is in a positive position, but they are also doing their best to pick foreign direct investment (FDI) flows into the country. As per the report of the World Bank’s Global Economic Prospects, 2023, India is ready to be the fastest growing economy and yes, the seven largest emerging market and developing economies. The country India is expected to remain strong at 5.8% this year, said by UN’s World Economic Situation and Prospects 2023. There are plenty of global firms that are seeing India as one of the splendid destinations to diversify their manufacturing reliance on China. They are achieving all this but, nevertheless, there are some factors that have curated a challenging environment for India regarding foreign direct investment. Also, the annual report of the Reserve Bank of India highlighted that India has received equity inflows worth $46 billion. Last year, they received equity inflows of around $58.8 billion. Over the last two years, India’s FDI inflows saw a downfall in multiple sectors. In 2023, sectors such as computer software, hardware, automobile, and infrastructure and construction, faced a drop in FDI. Apart from these sectors, Manufacturing also joined them as it saw the largest drop in FDI from $16.3 billion in FY22 to $11.3 billion in FY23. But the Finance sector has not met with any downfall. This top sector rises in FDI from $4.7 billion in FY22 to $6.8 billion in FY23. Other three sectors that have seen the FDI downfall are Education, transportation, and construction. Experts said that the reasons behind the downfall in these sectors might be uncertainty in the global economic environment, the COVID-19 pandemic, and the Ukraine war. (ICE NEW DELHI)

Fonte notizia: FDI Finance