India’s Net Foreign Direct Investment declines 72.4% y/y in August 2021 due to high base effect

Foreign direct investment worsened in August 2021
Foreign direct investment worsened in August 2021
Foreign direct investment worsened in August 2021

The decline in foreign direct investment worsened in August 2021, to 72.4% y/y, from 37.3% in July, due to the record high USD 18.6bn inflow in August 2020.

The decline in foreign direct investment worsened in August 2021

However, in actual terms, both July and August have witnessed net inflows of direct investment, of USD 2.25bn and USD 5.04bn, respectively, after a temporary net outflow in June. Foreign direct investment to India also declined in July and August, owing to the same high base phenomenon, while the levels have increased over the same period, to reach USD 5.9bn in August. 

The indicator is updated monthly, available from March 2011 to August 2021. The data reached an all-time high of 18,247 USD mn in August 2020 and a record low of -914 USD mn in June 2020.

Further data and analysis on India’s economy are available on the CEIC India Economy in a Snapshot – Q3 2021 report.

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19th October 2021 India’s Net Foreign Direct Investment declines 72.4% y/y in August 2021 due to high base effect