Not only is FDI into India falling, but foreign firms are increasingly taking their money out

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Key Points

Actual foreign direct investment (FDI) into India fell to $26.6 billion in FY 2023-24, down 37 percent from the previous fiscal, according to data released by the Reserve Bank of India (RBI) Tuesday evening..

An analysis by ThePrint found that the major reason for the fall in the value of actual FDI in India is the surge in the amount that foreign companies pulled out of the country, which grew to $44.4 billion during 2023-24, up 51 percent from the previous year...

Actual FDI into India is the difference between how much money foreign companies are investing in the country (gross investments), and how much they are taking out, called repatriation or disinvestments...

However, foreign companies repatriated or disinvested $44.4 billion in 2023-24, which meant that the actual direct investment into the country was only $26.6 billion...

The amount repatriated or disinvested by foreign companies in India stood at $18.4 billion in the pre-pandemic year, FY 2019-20..

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