RBI Reports 21-Month High Foreign Direct Investment of US$ 5.9 Billion - News

According to the Reserve Bank of India (RBI), Foreign Direct Investment (FDI) reached a 21-month high of US$ 5.9 billion in October, demonstrating India’s economic resilience. The country’s strong economic fundamentals are shown by the third consecutive month of rising net FDI. Manufacturing, retail, energy, and financial services received four-fifths of equity FDI. Mauritius, Singapore, Cyprus, and Japan led FDI contributions this month. 
In the April-October quarter, net FDI inflows fell to US$ 10.4 billion from US$ 20.8 billion last year. UN ESCAP statistics show India receiving the most FDI in 2023 for the second year. Due to net inflows under external commercial borrowings (ECBs) and non-resident deposit accounts, the RBI’s foreign exchange reserves reached a 20-month high of US$ 615.97 billion on December 15, supporting the rupee during volatility.
The past five weeks’ foreign exchange reserve increases show a systematic approach to currency stability. RBI intervention in currency markets prevents significant rupee depreciation, stabilizes India’s foreign exchange reserves, and allows the central bank to handle market swings.