Home » Economy and Finance » Decline in FDI Inflows from Cayman...

Decline in FDI Inflows from Cayman M

Islands and Cyprus to India

Foreign Direct Investment (FDI) from the Cayman Islands and Cyprus into India
plunges during April-September, contracting by 75% and over 95%, respectively.

piyush Published On December 4th, 2023

Foreign Direct Investment (FDI) into India witnessed a substantial contraction

from the Cayman Islands and Cyprus during April-September in the current
fiscal year, contributing to an overall decline of 24% in FDI inflows.

Cayman Islands
FDI from the Cayman Islands experienced a sharp decline of 75%, plummeting
from USD 582 million in the corresponding period of the previous fiscal year to
USD 145 million in April-September of the current fiscal.

Cyprus
Inflows from Cyprus contracted significantly, registering a staggering drop of over
95% to USD 35 million during the six-month period. This stark decrease is
compared to the USD 764 million recorded in April-September of the preceding
fiscal year.

Contributing Factors:
Heightened Scrutiny: Experts attribute the drastic reduction in FDI from both the
Cayman Islands and Cyprus to increased scrutiny of investment applications. This
suggests a more rigorous evaluation process for foreign investments from these
jurisdictions.

Overall FDI Scenario

The broader FDI scenario for India during April-September 2023-24 witnessed a
24% decline, totaling USD 20.48 billion. This dip was primarily driven by
decreased inflows in sectors such as computer hardware and software, telecom,
auto, and pharmaceuticals.

Important Questions Related to Exams

Q: What is the trend in FDI from the Cayman Islands and Cyprus to India
during April-September 2023-24?

A: FDI from the Cayman Islands sees a 75% dip, while Cyprus experiences a
staggering 95% contraction, contributing to an overall 24% decline in India’s FDI
inflows.

Q: What factors are attributed to the sharp fall in FDI from these
jurisdictions?

A: Experts attribute the decline to heightened scrutiny of applications, reflecting a

more rigorous approval process for foreign investments from the Cayman Islands
and Cyprus.

Q: How does the overall FDI scenario in India look during this period?

A: Overall FDI into India contracts by 24%, reaching USD 20.48 billion in April-
September 2023-24, with notable decreases in key sectors like computer
hardware, software, telecom, auto, and pharma.

Find More News on Economy Here