T.N.’s foreign direct investment inflows fell 27.7% to USD 2.17 billion in 2022-23
The Hindu
Tamil Nadu’s Foreign Direct Investment (FDI) inflows declined 27.7% to about USD 2.17 billion in the financial year 2022-23 from USD 3 billion in 2021-22, as per data shared in Parliament recently. Many other key States, except for Gujarat, have also seen a decline during this period.
Tamil Nadu’s Foreign Direct Investment (FDI) inflows declined 27.7% to about USD 2.17 billion in the financial year 2022-23 from USD 3 billion in 2021-22, as per data shared in Parliament recently. Many other key States, except for Gujarat, have also seen a decline during this period.
India’s FDI inflows as a whole, declined 16.34% to USD 70.97 billion in 2022-23 from USD 84.84 billion in 2021-22, as per the provisional figures from the Reserve Bank of India, Union Minister of State for Industry and Commerce, Som Parkash, said in a written reply to a question in the Rajya Sabha on July 21, 2023.
As per the data shared, Maharashtra has seen a 4.08% decline in FDI inflows to USD 14.81 billion in 2022-23 from USD 15.44 billion in 2021-22, while Karnataka has seen a 52.74% drop to USD 10.43 billion from USD 22.07 billion during the same period. Delhi has seen a fall of 8.05% in FDI inflows to USD 7.53 billion in 2022-23 from USD 8.19 billion in 2021-22.
Gujarat however, saw its FDI inflows jump 74.4% to USD 4.71 billion in 2022-23 from USD 2.70 billion in 2021-22.
Interestingly, Tamil Nadu’s FDI inflows had increased 30.4% to about USD 3 billion in 2021-22 from USD 2.3 billion in 2020-21, while Gujarat’s flows had fallen to USD 2.70 billion from USD 21.89 billion in the same period.
Mr. Parkash also said the State and Union Territory-wise inflow is maintained only for the equity component of FDI inflows. A tighter financial environment and a string of financial crises in global markets in general and in developing markets in particular, may have triggered a fall in FDI inflows, he said.
Mr. Prakash also cited the economic crisis due to the Russia-Ukraine conflict as among the reasons for the decline. Post pandemic, countries have adopted various protectionist measures to decrease reliance on other countries and to protect their own domestic industries. This could also possibly be affecting investor sentiments. The real GDP growth rates of Singapore, U.S.A. and the U.K. have decreased in 2022, which are the major source countries for FDI, he added.