Abhishek’s question prompts Centre to admit fall in net FDI inflows in recent years

Kolkata: In response to questions by Trinamool Congress (TMC) MP Abhishek Banerjee, the Union government has apparently acknowledged in Parliament that net foreign direct investment (FDI) inflows as a percentage of India’s GDP have declined sharply in recent years, attributing the trend to higher repatriation and disinvestment by foreign investors as well as increased overseas investments by Indian companies.

The disclosure came in a written reply to questions raised by Banerjee in the Lok Sabha.

Responding to Banerjee’s query seeking year-wise data on net FDI inflows relative to GDP, the Pankaj Chaudhary, MoS, Finance Ministry said the figure declined from 1.64 per cent in 2020-21 to 1.22 per cent in 2021-22 and 0.86 per cent in 2022-23. It fell further to 0.29 per cent in 2023-24 and 0.03 per cent in 2024-25. Explaining the trend, the ministry said the decline was mainly due to higher repatriation and disinvestment by foreign investors, along with increased overseas direct investment by Indian companies following the liberalisation of overseas investment rules in August 2022. The government said the rising repatriation reflects returns earned by foreign investors in India, while overseas investments indicate the growing global expansion of Indian firms.

In another question, Banerjee sought details from the Union Home Ministry regarding the release of funds under the State Disaster Response Fund (SDRF) and the National Disaster Response Fund (NDRF).

Nityanand Rai, MoS, Home Ministry, said the primary responsibility for disaster management rests with state governments, adding that SDRF allocations are made available to states for responding to notified disasters. Additional financial assistance from the NDRF is provided for disasters of a severe nature.

According to the reply, an Inter-Ministerial Central Team (IMCT) is deputed to assess damage in affected states. Based on its report, a sub-committee of the National Executive Committee examines the proposal before it is placed before a high-level committee chaired by the Union home minister for final approval.

Banerjee also asked the Railway Ministry about Vande Bharat sleeper services in proposed routes such as Howrah–Guwahati, Howrah–New Jalpaiguri and Howrah–Malda Town.

Ashwini Vaishnaw, Railway Minister, said the Howrah–Kamakhya Vande Bharat Sleeper Express commenced operations on January 22 this year, adding that fares are determined based on factors such as cost of service, facilities offered, affordability and competition from other modes of transport.