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Context:

  • The data released from the Ministry of Commerce and Industries shows that the FDI inflows to India contracted by 7 per cent to USD 33.49 billion during April-December in the financial year 2018-19.

Facts about FDI inflow to India

  • The FDI inflow during April-December 2018-19 at USD 33.49 was 7 per cent lower than the FDI inflow of USD 35.94 billion during April-December 2017-18.
  • The sectoral wise breakup of the FDI in the corresponding period is as listed below: services (USD 5.91 billion), computer software and hardware (USD 4.75 billion), telecommunications (USD 2.29 billion), trading (USD 2.33 billion), chemicals (USD 6.05 billion), and the automobile industry (USD 1.81 billion).
  • Singapore was the largest FDI contributor during April-December 2018-19 with USD 12.97 billion inflow.
  • Singapore was followed by Mauritius (USD 6 billion), the Netherlands (USD 2.95 billion), Japan (USD 2.21 billion), US (USD 2.34 billion), and the UK (USD 1.05 billion).
  • This decline in the FDI inflows could put pressure on the country’s balance of payments and may also adversely impact the value of the rupee.
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