The International Trade Council acknowledges the recent data released by the Reserve Bank of India (RBI), stating that the United States has been identified as the foremost contributor of foreign direct investment (FDI) into India for the financial year 2023 (FY23).
According to the RBI census, the United States accounted for Rs 8.58 lakh crore (approximately $103 billion), or 17.2% of India's total FDI inflows for FY23. The data reveals an upward trend compared to the previous financial year, further strengthening the trade relationship between the two nations.
Other significant contributors to India's FDI include Mauritius, the United Kingdom, and Singapore. These countries, along with the United States, collectively make up 60% of the total FDI received by India during the period in question.
In terms of overall market value, FDI in India reached Rs 50 lakh crore in FY23, with the major share being attributed to unlisted entities. Of the 38,689 organizations surveyed in the census, 33,850 reported FDI and outward direct investment (ODI) data on their balance sheets as of March 2023. Over 97% of these were unlisted companies, which accounted for a notable portion of India's FDI equity capital.
The census also offers insights into India's Outward Direct Investment (ODI), with Singapore, the United States, the United Kingdom, and the Netherlands as the leading recipients. Total ODI from Indian firms increased by 19.46% to Rs 9.11 lakh crore (approximately $109 billion) in FY23, compared to Rs 7.62 lakh crore in the preceding fiscal year.
In terms of sectors attracting FDI in India, manufacturing continued to lead both in market and face value. Within services, the "Information and Communication" and "Financial and Insurance Activities" sectors were significant beneficiaries.
The RBI census report provides a comprehensive view into India's global trade relationships, based on foreign liabilities and assets (FLA) data. These findings will serve as valuable reference points for policymakers, investors, and trade analysts in understanding current trends and shaping future trade strategies.