Total FDI, which includes equity inflows, reinvested earnings and other capital, also declined by 16 per cent to $70.97 billion in the last fiscal compared to $84.83 billion in fiscal 2021-22.
The reasons for the decline include threat of a global recession, economic crisis triggered by the Russia-Ukraine war and a dip in the real gross domestic product (GDP) growth rate of countries like the United States, the United Kingdom and Singapore.
"Post pandemic, countries have adopted various protectionist measures to decrease reliance on other countries and protect their own domestic industries. This could also be a possible reason affecting investor sentiments. The real GDP growth rates of Singapore, the US and UK have decreased in 2022, which are the major source countries for FDI," he said in a written reply.
ALCHEMPro News Desk (DS)
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