Between April and August 2024, investments by Overseas Indians in non-resident Indian (NRI) deposit schemes doubled to US$ 7.82 billion, up from US$ 3.74 billion during the same period in 2023, according to data from the Reserve Bank of India (RBI).
As of August 2024, total outstanding NRI deposits reached US$ 158.94 billion. The NRI deposit schemes include foreign currency non-resident (FCNR) deposits, non-resident external (NRE) deposits, and non-resident ordinary (NRO) deposits. During this period, most inflows were into FCNR (B) deposits, which saw US$ 3.47 billion, compared to US$ 1.55 billion a year earlier, bringing the outstanding balance to US$ 29.2 billion.
NRE deposits also experienced significant growth, with inflows of US$ 2.51 billion, up from US$ 868 million last year, resulting in total outstanding NRE deposits of US$ 100.54 billion. NRO deposits recorded inflows of US$ 1.84 billion, increasing from US$ 1.32 billion, with total outstanding NRO deposits at US$ 29.19 billion. NRO accounts are rupee-denominated accounts for NRIs.
Meanwhile, net foreign direct investment (FDI) in India has shown significant growth, more than doubling from US$ 3.26 billion to US$ 6.62 billion between April and August 2024. According to the Reserve Bank of India’s October bulletin, gross inward FDI rose to US$ 36.1 billion, up from US$ 27.4 billion during the same period last year.
Repatriation and disinvestment reached US$ 20.76 billion, compared to US$ 18.88 billion in the previous year. Approximately two-thirds of the gross FDI were directed towards manufacturing, financial services, communication, and energy sectors. Most of these investments came from Singapore, Mauritius, the UAE, the Netherlands, and the US.
The “State of Economy” report highlighted that India’s medium-term economic outlook remains positive, supported by ongoing reforms, infrastructure improvements, and advancements in sustainable technologies. These are expected to bolster growth and attract further FDI, particularly manufacturing.
