FDI inflows shrink for the first time in 6 years
FY’19 saw FDI equity inflows dropping by 1% to US$ 44.4 billion, the first decline over the past 6 years, according to data released by the Department for Promotion of Industry and Internal Trade. Pharmaceuticals (decline by 74% to US$ 266 million) and telecommunications (56% decrease to US$ 2.7 billion) were the worst affected; even as FDI in services sector registered a 37.3% growth in 2018-19. Mauritius (32% share) & Singapore (20% share) continued to reign as the top investors in India for this period.
This development comes in the backdrop of the descent in domestic consumption, investment and slowdown in India’s economic growth.