Decline in FDI Inflows From Cayman Islands and Cyprus To India
Decline in FDI Inflows From Cayman Islands and Cyprus To India
Decline in FDI Inflows From Cayman Islands and Cyprus To India
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.
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?
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.