New Delhi— India has attracted over $500 billion in foreign direct investment (FDI) equity inflows between 2014 and 2024 — more than double the $208 billion recorded in the previous decade — signaling growing global confidence in the country’s economic potential, according to Sanjay Nayar, President of Assocham.
Of this, a staggering $300 billion flowed in during just the last five years (2019–2024), reflecting an accelerating trend. In a recent column for The Economic Times, Nayar attributed this growth to landmark reforms such as Make in India, Digital India, and the Production Linked Incentive (PLI) schemes. These initiatives have not only improved ease of doing business but also positioned India as a major destination for sustainable and high-tech investments.
Sectors like manufacturing and digital infrastructure have led the charge. Since 2014, computer software and hardware have attracted $95 billion in FDI, while services ranging from finance to research and consulting drew $77 billion. The smartphone industry, once heavily reliant on imports, now benefits from domestic production driven by PLI. Apple, via Foxconn and Wistron, now assembles iPhones in India, with smartphone exports surging to $21 billion.
India’s focus on green technology has also attracted foreign capital, with investments pouring into renewable energy and electric mobility, further embedding the country into the global clean-tech value chain.
According to the Ministry of Commerce and Industry, India recorded $81.04 billion in FDI inflows for FY 2024–25, a 14% increase from $71.28 billion the previous year. This continues a steady upward trajectory from $36.05 billion in FY 2013–14, supported by policies allowing up to 100% FDI in most sectors via the automatic route.
The services sector emerged as the top FDI recipient in FY 2024–25, drawing 19% of total inflows, followed by computer software and hardware (16%) and trading (8%). Notably, FDI in services rose 40.77% year-over-year to $9.35 billion.
Manufacturing FDI also saw an 18% rise, hitting $19.04 billion, up from $16.12 billion in FY 2023–24. Maharashtra led all states with 39% of total FDI equity inflows, followed by Karnataka (13%) and Delhi (12%).
Singapore was the largest source of FDI, contributing 30%, trailed by Mauritius (17%) and the United States (11%). (Source: IANS)
