Foreign direct investment (FDI) in the country declined for the first time in the last six years in 2018-19, falling 1 per cent to $44.37 billion as overseas fund inflows slowed down in pharma, telecom and other sectors, latest data by the Department for Promotion of Industry and Internal Trade (DPIIT) showed.
In 2017-18, FDI inflows were at a record $44.85 billion, the data showed. The last time foreign fund inflows showed a reduction was in 2012-13, when inflows registered a contraction of 36 per cent to $22.42 billion as against $35.12 billion in 2011-12.
Since FY13, the inflows kept on growing, reaching a record high in FY18. DPIIT data showed that FDI inflows in pharmaceuticals, construction development, power and telecommunication sectors declined significantly last fiscal.
FDI in pharmaceuticals fell from $1 billion in 2017-18 to $266 million in FY19; in construction development, from $540 million to $213 million; in power, from $1.62 billion to $1.1 billion; and in telecom sector, from $6.21 billion to $2.67 billion.
Sectors that witnessed a growth in FDI include service ($9.15 billion), computer software and hardware ($6.41 billion), trading ($4.46 billion), and automobile ($2.62 billion).
Meanwhile, Singapore became the top source of foreign investment into India last fiscal, accounting for $16.22 billion inflows. Mauritius, which was the top investor in India last fiscal, invested in $8 billion in FY19. Other major investors in the country include Japan, the Netherlands, the UK, the US, Germany, Cyprus, the UAE and France. —WITH PTI