New Delhi, Dec 23 (NationPress) Net foreign direct investment (FDI) in India has seen a remarkable increase, nearly doubling to $6.2 billion for the period of April to October, up from $3.3 billion the previous year. This surge is primarily due to a decrease in the repatriation of foreign capital, despite an uptick in outward FDI, according to an official statement.

The RBI’s December Monthly Bulletin indicates that gross inward FDI experienced a slight increase, rising to $58.3 billion during April to October from $50.5 billion in the same timeframe last year. The month of October saw FDI levels stabilize, with Singapore, Mauritius, and the United States representing over 70 percent of total inflows.

During this period, repatriation, or the capital exiting India, decreased to $31.65 billion, down from $33.2 billion, while outward FDI increased to $20.5 billion from $14.06 billion, as stated in the report.

The bulletin highlighted that the financial sector attracted the largest share of FDI, accounting for 60 percent, followed by manufacturing, electricity, and communication services.

Key destinations for outward FDI included Singapore, the United States, and the United Arab Emirates, which collectively made up over half of total outward FDI. A sector-specific analysis revealed that approximately 90 percent of outward FDI was directed towards financial, insurance, and business services, followed by wholesale and retail trade, and manufacturing.

However, net FDI was negative in October, reported at -$1.5 billion, primarily due to heightened repatriation and outward FDI. In October alone, repatriation was nearly $5 billion compared to $5.4 billion from the previous year, while outward FDI escalated to $3.90 billion from $1.89 billion.

The Indian rupee depreciated against the US dollar in November, affected by the dollar's gains, subdued foreign portfolio flows, and uncertainties surrounding the India-US trade agreement.

The RBI’s note also mentioned that high-frequency indicators for November show that economic activity remains resilient, with services experiencing ongoing robust expansion, although manufacturing displays signs of slowing down.

Sustained private consumption growth is being fueled by strong rural demand and diminishing inflationary pressures, although net exports continue to hinder overall growth.