Economic Survey 2023: FDI into manufacturing slows in first half of FY23

Foreign direct investment (FDI) into the manufacturing sector jumped from $12.1 billion in FY21 to $ 21.3 billion in FY22.

Because of global uncertainty in the wake of the Ukraine conflict, FDI inflow in the first half of FY23 fell from its corresponding level in the first half of FY22, according to Economic Survey 2023.

Monetary tightening at the global level has restricted FDI inflows.

“Notwithstanding an overall drop in FDI in the first half of FY23, inflows have stayed above the pre-pandemic levels, driven by structural reforms and measures improving the ease of doing business,” the Survey says.

The government has implemented an investor-friendly FDI policy under which FDI up to 100 percent is permitted through automatic route in most sectors.