New Delhi— Foreign Direct Investment (FDI) inflows into India rose sharply to $81.04 billion in fiscal year 2024–25, marking a 14 percent increase from $71.28 billion in the previous year, the Ministry of Commerce and Industry announced on Tuesday.
This growth continues a steady upward trajectory over the past 11 years. In FY 2013–14, India received $36.05 billion in FDI, and inflows have since more than doubled, thanks to liberalized policies that allow up to 100 percent FDI through the automatic route in most sectors.
The services sector led FDI equity inflows in FY 2024–25, accounting for 19 percent of the total. It was followed by computer software and hardware (16 percent), and trading (8 percent). Investment in services surged 40.77 percent year-over-year, reaching $9.35 billion, up from $6.64 billion.
Manufacturing FDI also posted strong growth, rising 18 percent to $19.04 billion in FY 2024–25 from $16.12 billion the previous year, signaling India’s emergence as a key destination for industrial investment.
Among Indian states, Maharashtra attracted the largest share of FDI equity (39 percent), followed by Karnataka (13 percent) and Delhi (12 percent).
Singapore remained the top source of FDI, contributing 30 percent of total inflows, followed by Mauritius (17 percent) and the United States (11 percent).
Between 2014 and 2025, India received $748.78 billion in FDI—an increase of 143 percent compared to the $308.38 billion recorded during the previous 11-year period (2003–14). This accounts for nearly 70 percent of the total $1.07 trillion in FDI India has received over the past 25 years.
India’s appeal as an investment hub has grown globally, with the number of source countries rising from 89 in FY 2013–14 to 112 in FY 2024–25.
The government has implemented wide-ranging reforms to liberalize FDI regulations. Between 2014 and 2019, it raised FDI limits in sectors such as defense, insurance, and pensions, while easing entry for investment in construction, civil aviation, and single-brand retail.
From 2019 to 2024, further liberalization included permitting 100 percent FDI under the automatic route in coal mining, contract manufacturing, and insurance intermediaries. In 2025, the Union Budget proposed increasing the FDI cap to 100 percent for insurance companies that reinvest all premiums domestically. (Source: IANS)
