Recession, war took toll on FY23 FDI: Centre

New Delhi: Threat of a global recession, economic crisis triggered by the Russia-Ukraine war and dip in the real GDP growth rate of countries like Singapore, the US and UK are some of the reasons for FDI decline in India in 2022-23, Parliament was informed on Friday.

Foreign direct investment (FDI) into India declined 22 per cent to $46 billion in 2022-23, dragged by lower inflows in computer hardware and software, and automobile industry. Total FDI, which includes equity inflows, reinvested earnings and other capital, also declined 16 per cent to $70.97 billion in the last fiscal as against $84.83 billion in 2021-22. In a written reply to the Rajya Sabha, Minister of State for Commerce and Industry Som Parkash said the major reasons for shortfall in FDI in 2022-23 include a tighter financial environment and a string of financial crises in global markets in general and developing markets in particular besides the economic crisis due to Russia-Ukraine conflict.