FDI declines in FY21
Despite the record capital raising by Reliance Jio, India's FDI declined in FY21 due to a sharp increase in repatriation of existing foreign direct investments.
While Gross inflow of FDI increased just over 10% in FY21, this was more than offset by existing FDI being repatriated out of India. Repatriation of existing FDI increased 50% in FY21.
Thus, almost a third of the FDI that came in India in FY21 flowed out by way of Repatriation. Consequently, the net inflow of FDI declined slightly.
Food for Thought: Why are existing FDI investors repatriating money from India? Are they not finding enough opportunities to reinvest in what still remains (but for Covid) one of the fastest growing economy in the World?
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