Net equity capital inflows, a key component of FDI, also dropped by 5.98 per cent YoY in FY24 to $667.5 million compared to $709.93 million in FY23, indicating subdued investor confidence and possibly reduced expansion plans by foreign companies, according to domestic media reports.
FDI inflows into Bangladesh dropped by 8.8 per cent YoY in FY24 to $1,468.17 million.
Net equity capital inflows, a key component of FDI, also dropped by 5.98 per cent YoY in FY24 to $667.5 million.
India received about 39 per cent of the total outward FDI by Bangladesh firms in FY24.
Such firms directed $31.51 million in FDI to India in the fiscal out of the $81 million worth total outward FDI.
Despite the contraction in inflows, Bangladesh’s FDI stock experienced modest growth.
As of June 2024, the total FDI stock reached $17,543.08 million, a rise of 1.49 per cent YoY, suggesting that while new investments have slowed, existing foreign investments stay relatively stable.
Meanwhile, India received about 39 per cent of the total outward FDI by Bangladesh firms in FY24, according to data from the bank. Such firms directed $31.51 million in FDI to India in the fiscal out of the $81 million worth total outward FDI.
After taking $4.86 million in inflows from India into consideration, the net outflow to India stood at $26.65 million, the data showed.
The United Arab Emirates (UAE) ranked second in receiving FDI from Bangladesh, with a total outflow of $10.81 million and a net outflow of $10.79 million from the country.
India and the UAE together accounted for over half of Bangladesh’s total outward FDI in FY24.
Fibre2Fashion News Desk (DS)
