Declining FDI from Cyprus and the Cayman Islands into India between April and September.

According to government data, there was a significant decline in foreign direct investment (FDI) into India from the Cayman Islands and Cyprus between April and September of this fiscal year, with a 24% decline in overall inflows.

According to government data, there was a significant decline in foreign direct investment (FDI) into India from the Cayman Islands and Cyprus between April and September of this fiscal year, with a 24% decline in overall inflows.
The data indicated that foreign direct investment (FDI) from the Cayman Islands decreased by 75% to USD 145 million from USD 582 million during the same period in the previous fiscal year.
In a similar vein, inflows from Cyprus decreased by more than 95% to USD 35 million over the course of the six-month period, compared to USD 764 million from April to September of 2022–2023.
Experts have linked heightened application scrutiny to the dramatic decline in foreign direct investment (FDI) from the Cayman Islands and Cyprus.

During the first half of 2023–24, FDI inflows from other tax havens like Singapore and the UAE, as well as the Cayman Islands and Cyprus, have also lost their lustre, according to Anjali Malhotra, Partner–Regulatory, Nangia Andersen India.

In addition, Malhotra noted that the recent decline in investment from tax havens is consistent with a general decline in FDI during the first half of 2023–2024. "...the recent decline in investment from Cayman Islands and Cyprus may be attributed to enhanced scrutiny of these investments," Malhotra said.
According to her, higher interest rates as a result of the US and other western countries' high inflation, which is made worse by the geopolitical conditions in East and West Asia, may be the cause of the overall decline.
It is noteworthy that the total outflow of foreign direct investment (FDI) from Cyprus to the global economy has been falling at a compound annual growth rate (CAGR) of 62%, according to Sanjay Kumar, a partner at Deloitte India.
According to Kumar, the Financial Action Task Force (FATF) took the Cayman Islands off of its "grey list" in October of this year. This could lead to a rise in foreign direct investment (FDI) coming into the Cayman Islands in the future.