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FDI Equity Inflows in India for FY24; Infrastructure and Power sector in focus

13 June 20246 mins read by Angel One
This article examines the trends in Foreign Direct Investment (FDI) equity inflows into India for the FY24, highlighting month-wise fluctuations and the performance of key sectors.
FDI Equity Inflows in India for FY24; Infrastructure and Power sector in focus
ShareShare on 1Share on 2Share on 3Share on 4Share on 5
Sr.No Month FDI Equity inflow (Rs crore)
1 April, 2023 41,877
2 May, 2023 22,055
3 June, 2023 25,999
4 July, 2023 20,917
5 August, 2023 24,071
6 September, 2023 33,957
7 October, 2023 52,755
8 November, 2023 23,628
9 December, 2023 19,771
10 January, 2024 49,829
11 February, 2024 21,977
12 March, 2024 31,063
Total FY24 3,67,899
Total FY23 3,67,435
Growth over last year (%) 0.13%

Source- Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry

The financial year 2023-24 saw a total FDI equity inflow of Rs 3,67,899 crore, a marginal increase of 0.13% over the previous year’s Rs 3,67,435 crore. This slight growth indicates a stable investment climate despite global economic uncertainties.

April 2023 started strong with an inflow of Rs 41,877 crore, which set a positive tone for the year. However, May 2023 saw a significant drop to Rs 22,055 crore, indicating volatility. The inflows recovered slightly in June 2023 to Rs 25,999 crore, but July 2023 recorded another dip to Rs 20,917 crore.

August 2023 experienced a modest increase to Rs 24,071 crore, followed by a substantial rise in September 2023 to Rs 33,957 crore. The most significant monthly inflow was in October 2023, with Rs 52,755 crore, showcasing strong investor confidence. This peak was followed by a dip in November 2023 to Rs 23,628 crore and December 2023 to Rs 19,771 crore.

The new year began with a robust inflow of Rs 49,829 crore in January 2024, reflecting renewed investment interest. February 2024 saw a decrease to Rs 21,977 crore, but March 2024 concluded the fiscal year on a positive note with Rs 31,063 crore.

Sectoral Performance and Changes

The analysis of sectoral performance reveals significant shifts in FDI equity inflows across various industries.

Rank Sector Name FY23 FY24 % change YOY
1 Construction (infrastructure) activities 13,588 35,076 158.14%
2 Power 5,483 14,141 157.91%
3 Construction development 1,196 2,113 76.67%
4 Computer software & hardware 74,718 66,090 -11.55%
5 Trading 38,060 32,080 -15.71%
6 Automobile industry 15,184 12,622 -16.87%
7 Services sector ** 69,852 54,894 -21.41%
8 Drugs & Pharmaceuticals 16,654 8,844 -46.90%
9 Chemicals (other than fertilizer) 14,662 6,985 -52.36%
10 Telecommunications 5,469 2,318 -57.62%

Source- Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry

The construction (infrastructure) activities sector saw a remarkable increase of 158.14%, rising from Rs 13,588 crore in FY23 to Rs 35,076 crore in FY24. Similarly, the power sector experienced a substantial increase of 157.91%, with inflows growing from Rs 5,483 crore to Rs 14,141 crore.

Construction development also saw positive growth, with a 76.67% increase from Rs 1,196 crore to Rs 2,113 crore. However, some sectors faced declines. The computer software and hardware sector, traditionally a strong performer, saw an 11.55% decrease in inflows from Rs 74,718 crore to Rs 66,090 crore.

The trading sector experienced a 15.71% drop, with FDI equity inflows falling from Rs 38,060 crore to Rs 32,080 crore. The automobile industry also saw a decrease of 16.87%, from Rs 15,184 crore to Rs 12,622 crore.

The services sector, encompassing financial, banking, insurance, non-financial/business, outsourcing, R&D, courier, tech testing and analysis, and other services, witnessed a 21.41% decline, with inflows dropping from Rs 69,852 crore to Rs 54,894 crore.

Sectors like drugs and pharmaceuticals and chemicals (other than fertiliser) saw even steeper declines. The drugs and pharmaceuticals sector experienced a 46.90% decrease, with inflows falling from Rs 16,654 crore to Rs 8,844 crore. The chemicals sector saw a 52.36% reduction, from Rs 14,662 crore to Rs 6,985 crore. The telecommunications sector had the largest drop, with inflows plummeting by 57.62%, from Rs 5,469 crore to Rs 2,318 crore.


The FDI equity inflows for FY 2023-24 demonstrate a stable investment environment with slight overall growth. The substantial monthly fluctuations highlight the volatile nature of foreign investments, influenced by various global and domestic factors. Sector-wise, infrastructure, construction and power sectors showed remarkable growth, reflecting increased investor confidence and policy support in these areas. Conversely, traditional sectors like computer software and hardware, trading, and services saw declines, indicating shifting investor preferences and possibly the impact of global economic challenges.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.

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