India’s FDI Inflows Surpass $1 Trillion, Strengthening Global Investment Position

Foreign Direct Investment (FDI) inflows into India have surpassed the $1 trillion milestone from April 2000 to September 2024, solidifying the country’s standing as a prime and secure destination for global investors.

According to the Department for Promotion of Industry and Internal Trade (DPIIT), the cumulative FDI, which includes equity, reinvested earnings, and other capital, amounted to $1,033.40 billion during this period.

Mauritius contributed around 25% of the total FDI, followed by Singapore at 24%, the United States at 10%, the Netherlands at 7%, Japan at 6%, the United Kingdom at 5%, and the UAE at 3%. Other contributors like the Cayman Islands, Germany, and Cyprus accounted for 2% each.

The data reveals that India received $177.18 billion from Mauritius, $167.47 billion from Singapore, and $67.8 billion from the US during this period.

Key sectors driving these inflows include services, computer software and hardware, telecommunications, trading, construction, automobile manufacturing, chemicals, and pharmaceuticals.

The Commerce and Industry Ministry highlighted that India attracted a cumulative FDI of $667.4 billion between 2014 and 2024, marking a 119% growth compared to the previous decade (2004-14).

To maintain its attractiveness as an investment destination, the Indian government regularly reviews its FDI policies and makes adjustments after consulting with stakeholders.

Experts anticipate that FDI inflows into India will continue to accelerate in 2025, buoyed by robust macroeconomic indicators, improved industrial output, and appealing Production-Linked Incentive (PLI) schemes, despite global geopolitical challenges. India remains a preferred choice for international investors, with most sectors permitting FDI through the automatic route. However, foreign investments in sectors like telecom, media, pharmaceuticals, and insurance still require government approval.