India slips to 15th among top FDI recipients in 2023

Of the top 15 recipients of FDI in 2023, more than half of them saw the inflow drop in 2023.
Image used for representational purpose only.
Image used for representational purpose only.Photo | Express

NEW DELHI: Foreign direct investment (FDI) in India during 2023 declined by 43% to $28 billion compared to $49 billion in the previous year, a report by UN Trade and Development showed. The sharp drop in FDI inflow resulted in India’s rank among the top FDI recipients falling from 8th in 2022 to 15th in 2023.

According to UNCTAD, global foreign direct investment (FDI) in 2023 decreased marginally, by 2%, to $1.3 trillion. Among the top 20 host economies, the largest absolute drops were registered in France, Australia, China, the United States and India, in that order.

FDI in developing Asia fell by 8% to $621 billion. The US, China, Singapore and Hong Kong maintained their top four positions in terms of value of FDI received. The US received $311 billion in 2023 compared to $332 billion in 2022.

China received $163 billion in 2023 compared to $189 billion in the previous year. Of the top 15 recipients of FDI in 2023, more than half of them saw the inflow drop in 2023.

The report says that the global environment for international investment remains challenging in 2024. It says that weakening growth prospects, economic fracturing trends, trade and geopolitical tensions, industrial policies and supply chain diversification are reshaping FDI patterns, causing some multinational enterprises (MNEs) to adopt a cautious approach to overseas expansion.

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