New Delhi, September 21: Keeping the upward trajectory, the Reserve Bank of India (RBI) saw net foreign direct investment (FDI) growing in the first four months of FY25, owing to an increase in gross FDI flows. The gross inward FDI grew by 23.6 per cent (year-on-year) to $27.7 billion during the April-July period -- from $22.4 billion a year ago.

The net FDI went up $5.5 billion in the April-July period, compared to $3.8 billion in the year-ago period, according to the latest RBI bulletin. As per the latest data by the central bank, repatriation and divestment by those who made direct investments in India went up $15.9 billion in the four months of FY25 -- from $14.7 billion in the year-ago period. RBI Confident of 7.2% Growth in FY 2025; India Poised To Become Third Largest Economy in the World, Says Shaktikanta Das.

“With more than three-fourths of the flows, the major source countries were Singapore, Mauritius, the Netherlands, the US, Belgium and Japan,” according to the Central Bank. Non-resident deposits recorded net inflows of $5.8 billion during April-July 2024 as compared with $3 billion a year ago, with higher inflows in all three accounts.

Manufacturing, financial services, communication services, computer services, electricity, and other energy sectors accounted for more than three-fourths of the gross FDI inflows. RBI Monetary Policy 2024: Voices for Interest Rate Cut Within Reserve Bank of India’s Rate-Setting Panel Growing.

“With more than three-fourths of the flows, the major source countries were Singapore, Mauritius, the Netherlands, the US, Belgium, and Japan,” said RBI’s state of the economy report.

Net FDI flow dropped sharply to $9.8 billion in FY24 from $28 billion in the previous year. In FY22, net FDI flows into the country were $38.6 billion. Net foreign portfolio investment (FPI) was to the tune of $4.3 billion during August, the third consecutive month of net inflows.

(The above story first appeared on LatestLY on Sep 21, 2024 02:48 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).