
Despite India's rapid growth and increasing share in global trade, foreign direct investment (FDI) into the country has slumped in the past year. Net FDI in the year through September fell to $13 billion, down from $38 billion a year earlier. This decline in FDI is in line with the trend seen in official balance of payments data. The slump in FDI was confounding, given the economy’s rapid growth and increasing share in global trade.