29 May 2025

India records $81.04 billion FDI inflow in FY 2024–25

The Ministry of Commerce & Industry announced on Tuesday that India's fiscal year 2024–2025 saw a record USD 81.04 billion in foreign direct investment (FDI), up 14% from the year before due to a liberalized regulatory regime and significant inflows into the manufacturing and services sectors.

In FY 2024–2025, the services sector received 19% of all FDI equity inflows, making it the largest receiver. Trading came in second with 8% and computer software and hardware with 16%. Foreign direct investment (FDI) into the services sector increased by 40.77% to USD 9.35 billion from USD 6.64 billion the year before.

Manufacturing foreign direct investment (FDI) is also growing in India, rising by 18% in FY 2024–2025 to USD 19.04 billion from USD 16.12 billion in FY 2023–2024.

The largest percentage of all FDI equity inflows in FY 2024–2025 (39%) went to Maharashtra, which was followed by Karnataka (13%) and Delhi (12%). With a 30% stake, Singapore was the largest source nation, followed by the US (11%), Mauritius (17%), and others.

India has received FDI totaling USD 748.78 billion over the last eleven fiscal years (2014–25), a 143% increase over the preceding eleven years (2003–14), when inflows were USD 308.38 billion. This amounts to about 70% of the USD 1,072.36 billion in foreign direct investment that has been received during the last 25 years.

Additionally, from 89 in FY 2013–14 to 112 in FY 2024–25, the number of FDI source countries rose, highlighting India's rising popularity as a worldwide investment destination.

The government has liberalized FDI norms by implementing revolutionary reforms in a number of regulatory areas. The defense, insurance, and pension sectors saw higher FDI caps between 2014 and 2019, whereas the construction, civil aviation, and single-brand retail trading sectors saw liberalized regulations.

Notable measures between 2019 and 2024 included permitting 100% FDI in coal mining, contract manufacturing, and insurance intermediaries under the automated route. The Union Budget of 2025 suggested raising the FDI cap for businesses that invest their whole premium in India from 74% to 100%.

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