FDI Doubles in 10 Years as India Emerges Key Investment Hub

India has drawn over $500 billion in foreign direct investment (FDI) between 2014 and 2024, more than twice the amount received in the ten years prior. According to Assocham President Sanjay Nayar, the country pulled in $300 billion of that total just in the past five years—showing just how quickly investor interest has grown.

Writing in The Economic Times, Nayar credited this rise to key government campaigns like Make in India, Digital India, and the Production Linked Incentive (PLI) scheme. These initiatives, he said, have made it easier to do business in the country and helped position India as a rising force in green technology and clean energy.

Sectors like manufacturing and digital infrastructure have seen the biggest gains. Since 2014, computer software and hardware have attracted $95 billion in FDI, while services—including finance, IT, research, and consultancy—drew in another $77 billion.

India’s mobile phone story is another sign of change. A decade ago, nearly 80% of smartphones in the country were imported. Thanks to the PLI scheme, global tech giants like Apple—through partners like Foxconn and Wistron—are now assembling iPhones in India. As a result, smartphone exports have surged to $21 billion.

Investors are also backing India’s clean energy goals. From solar and wind power to electric vehicles, the country is increasingly seen as a key player in the global shift to green technologies, Nayar said.

According to the Ministry of Commerce and Industry, India received $81.04 billion in FDI in FY 2024-25—up 14% from $71.28 billion the year before. Annual FDI numbers have consistently grown over the past 11 years, starting from $36.05 billion in 2013-14.

The services sector was the top FDI magnet this year, drawing 19% of all inflows. It was followed by computer software and hardware (16%) and trading (8%). Notably, FDI into the services space jumped nearly 41% in one year—from $6.64 billion to $9.35 billion.

FDI into manufacturing also rose by 18%, reaching $19.04 billion in 2024-25. Maharashtra led all states in FDI inflows, taking in 39% of the total, followed by Karnataka at 13% and Delhi at 12%.

Among source countries, Singapore was the largest contributor to FDI in India, accounting for 30% of total inflows. Mauritius (17%) and the United States (11%) followed close behind.

Also Read: India’s Liberalised FDI Regime Sparks Global Investor Interest, Says Deloitte