India's FDI Surge: Record $81 Billion Inflows in 2024-25

India's Foreign Direct Investment (FDI) saw a significant 14% growth in the fiscal year 2024-25, amounting to $81.04 billion, the Commerce Ministry announced on Tuesday. This uptrend aligns with a decade-long pattern of increasing foreign investments, rising from $36.05 billion in 2013-14 to this record figure.

The Commerce Ministry emphasized that the country's open FDI policy, allowing up to 100% investment through the automatic route in most sectors, has been instrumental in maintaining India's competitiveness as an attractive investment destination. Continuous policy reviews ensure the nation remains inviting to global investors.

Leading the FDI influx this year was the services sector, capturing 19% of total inflows, followed closely by computer software and hardware at 16%, and trading at 8%. The services sector alone witnessed a 40.77% increase, recording $9.35 billion against the previous year's $6.64 billion.

Manufacturing FDI also noted an upward trajectory, growing by 18% to $19.04 billion, with Maharashtra, Karnataka, and Delhi accounting for the largest shares of FDI equity in 2024-25. Meanwhile, Singapore emerged as the top source country, followed by Mauritius and the United States.

Remarkably, over the last eleven fiscal years, India attracted a total FDI of $748.78 billion—a staggering 143% increase compared to the $308.38 billion from the preceding eleven years, underscoring India's rising global investment prominence.

The government's drive to liberalize FDI norms included reforms in Defence, Insurance, and Pension between 2014 and 2019. From 2019 onwards, further liberalizations covered coal mining, contract manufacturing, and insurance intermediaries. The 2025 Union Budget proposes further raising investment limits.

(With inputs from agencies.)