India has set a new benchmark for itself in foreign investment by recording a provisional Foreign Direct Investment (FDI) inflow of USD 81.04 billion during the financial year 2024-25, according to the latest data released by the Press Information Bureau.
The massive figure marks a significant 14% rise from the previous year’s FDI inflow of USD 71.28 billion and highlights the growing confidence of global investors in the Indian economy.
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Over the past decade, India’s FDI landscape has undergone remarkable transformation, with inflows rising steadily from USD 36.05 billion in FY 2013-14 to USD 81.04 billion as of now.
The cumulative FDI received over the last eleven financial years (2014–25) stands at a substantial USD 748.78 billion, registering a 143% increase over the preceding eleven years (2003–14), which brought in a ginormous USD 308.38 billion.
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Impressively, the last eleven years account for nearly 70% of all FDI received in the past 25 years, with India attracting a total of USD 1,072.36 billion in this period.
This sustained rise in FDI can be attributed to a proactive and investor-friendly FDI policy framework. India’s FDI policy, in contrast to many nations, allows 100% FDI in most sectors via the automatic route and is also reviewed periodically to maintain the country’s status as a sustainable investment destination.
The numbers kept growing, with investment pouring in from 89 countries in FY 2013-14 to 112 in FY 2024-25, another nod towards India’s global appeal.
Sector-wise, the services sector led FDI equity inflows in FY 2024-25, accounting for 19% of the total, followed by computer software and hardware (16%) and trading (8%).
The services sector alone saw a robust growth of 40.77% in FDI, rising from USD 6.64 billion in the previous year to USD 9.35 billion.
Manufacturing FDI also recorded a healthy growth of 18%, reaching USD 19.04 billion, further establishing India as a manufacturing hub on the global stage.
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Notably, the state of Maharashtra emerged as the highest recipient of FDI equity inflows, capturing 39% of the total share, followed by Karnataka with 13% and Delhi at 12%.
Among source countries, Singapore continued to be the leading contributor, accounting for 30% of FDI inflows, trailed by Mauritius (17%) and the United States (11%).
Between 2014 and 2019, the Government undertook substantial reforms, including increasing FDI caps in Defence, Insurance, and Pension sectors, and liberalising policies for Construction, Civil Aviation, and Single Brand Retail Trading.
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Subsequent reforms included permitting 100% FDI under the automatic route in coal mining, contract manufacturing, and insurance intermediaries. The Union Budget 2025 further proposed increasing the FDI limit from 74% to 100% for companies investing their entire premium within India.
The recent trends reaffirm India’s status as a preferred destination for global investors, one that is driven by evolving policies, a growing business ecosystem, and rising international confidence in the country’s economic trajectory.
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