FDI inflow into India grows 14 pc in 2024-25: Commerce Ministry

NEW DELHI: Foreign Direct Investment (FDI) flows into India increased 14 per cent to $81.04 billion in the recently concluded financial year 2024-25, the Commerce Ministry said in a statement. Over the past decade, FDI inflows have seen a steady rise — from $36.05 billion in 2013-14 to $81.04 billion (provisional) in 2024-25.

The central government has put in place an investor-friendly Foreign Direct Investment (FDI) policy, under which most sectors are open for 100 per cent FDI through the automatic route, the commerce ministry boasted. The FDI policy is reviewed on an ongoing basis to ensure that India remains an attractive and competitive investment destination, the commerce ministry statement added.

Coming to 2024-25, the services sector emerged as the top recipient of FDI equity, attracting 19 per cent of total inflows, followed by computer software and hardware (16 per cent) and trading (8 per cent). FDI in the services sector rose by 40.77 per cent to $9.35 billion from $6.64 billion in the previous year.

India is also becoming a hub for manufacturing FDI, which grew by 18 per cent in 2024-25, reaching $19.04 billion compared to $16.12 billion in 2023-24. Maharashtra accounted for the highest share (39 per cent) of total FDI equity inflows in 2024-25, followed by Karnataka (13 per cent) and Delhi (12 per cent).

Among source countries, Singapore led with 30 per cent share, followed by Mauritius (17 per cent) and the United States (11 per cent). Over the last eleven financial years (2014-25), India attracted FDI worth $748.78 billion, reflecting a 143 per cent increase over the previous eleven years (2003-14), which saw $308.38 billion in inflows.

This constitutes nearly 70 per cent of the total $1,072.36 billion in FDI received over the past 25 years. Additionally, the number of source countries for FDI increased from 89 in 2013-14 to 112 in 2024-25, said the commerce ministry.

“In the regulatory domain, the Government has undertaken transformative reforms across multiple sectors to liberalize FDI norms. Between 2014 and 2019, significant reforms included increased FDI caps in Defence, Insurance, and Pension sectors, and liberalised policies for Construction, Civil Aviation, and Single Brand Retail Trading,” the statement noted.

From 2019 to 2024, notable measures included allowing 100 per cent FDI under the automatic route in coal mining, contract manufacturing, and insurance intermediaries. In 2025, the Union Budget proposed increasing the FDI limit from 74 per cent to 100 per cent for companies investing their entire premium within India. (ANI)