Inflows during January-March 2023 also contracted 40.55 per cent to USD 9.28 billion.During April-June last year, it declined 34 per cent to USD 10.94 billion.
Investments from overseas fell in April, May, June, July and August.
However, in September, it rose to USD 4.08 billion compared to USD 2.97 billion in the same month last year, the data from the Department for Promotion of Industry and Internal Trade (DPIIT) showed.
The total FDI — which includes equity inflows, reinvested earnings and other capital — contracted 15.5 per cent to USD 32.9 billion during the period under review against USD 38.94 billion in April-June 2022.
During the six months of this fiscal, FDI equity inflows decreased from major countries, including Singapore, Mauritius, the US, the UK, and UAE.
Investments fell significantly from the Cayman Islands and Cyprus to USD 145 million and USD 35 million, respectively, during April-September 2023 against USD 582 million and USD 764 million in the year-ago period.
However, inflows increased from the Netherlands, Japan and Germany.
Sectorally, inflows contracted in computer software and hardware, trading, services, telecommunication, automobile, pharma and chemicals.
However, construction (infrastructure) activities, construction development and the metallurgical industry registered growth in inflows.
State-wise, though Maharashtra received the highest inflow of USD 7.95 billion during the period, it was down compared to USD 8 billion in the same period last year.
Similarly, overseas inflows in Karnataka plunged to USD 2.84 billion in April-September 2023 from USD 5.32 billion in the same period last year. Other states/UTs where FDI dipped in the quarter include Gujarat, Rajasthan, Delhi, Tamil Nadu, and Haryana.
On the other hand, FDI in Telangana, Jharkhand, and West Bengal reported growth during the period.
An official stated that hardening interest rates globally and worsening geo-political situation impacted FDI inflows into India in 2022-23.
FDI equity inflows into India declined 22 per cent to USD 46 billion in 2022-23.