India received $81.04 billion in gross Foreign Direct Investment (FDI) during 2024–25, reflecting a 14% rise from the previous year, according to provisional government data. FDI equity inflows alone surpassed $50 billion, registering a 13% year-on-year growth. The momentum, however, slowed in the final quarter of the fiscal year, with gross FDI declining 24.5% to $9.34 billion.
India recorded a 13% year-on-year growth in FDI during the entire 2023–24 fiscal, attracting $50 billion compared to $44.42 billion in the previous year. Total FDI, comprising equity inflows, reinvested earnings and other capital, rose 14% to $81.04 billion, marking the highest level in three years.
Singapore remained India’s top FDI source with $14.94 billion, followed by the US ($5.45 billion) and Mauritius ($3.73 billion). However, inflows from countries like the Netherlands, Japan, UK and Germany saw a decline.
Sector-wise, growth was recorded in services ($9.34 billion), trading, telecom, automobile, construction development, non-conventional energy ($4 billion) and chemicals. However, sectors like software and hardware, infrastructure and pharmaceuticals witnessed a contraction.
Singapore, Mauritius and the US together accounted for nearly 58% of total equity inflows.
The data also showed that Maharashtra received the highest inflow of $19.6 billion during the last fiscal. It was followed by Karnataka ($6.61 billion), Delhi ($6 billion), Gujarat (about $5.7 billion), Tamil Nadu ($3.68 billion), Haryana ($3.14 billion) and Telangana ($2.99 billion).
Maharashtra accounted for the highest share (39%) of total FDI equity inflows, Karnataka (13%) and Delhi (12%).
The government has put in place an investor-friendly Foreign Direct Investment (FDI) policy, under which most sectors are open for 100% overseas inflows through the automatic route.
“This policy is reviewed on an ongoing basis to ensure that India remains an attractive and competitive investment destination,” the commerce and industry ministry said in a statement.
It added that India is also becoming a hub for manufacturing FDI, which grew by 18% in 2024-25 to $19.04 billion compared to $16.12 billion in 2023-24.
Over the last eleven financial years (2014-25), India attracted FDI worth $748.78 billion, reflecting a 143% increase over the previous eleven years (2003-14), which saw $308.38 billion in inflows.
This constitutes nearly 70% 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, underscoring India’s growing global appeal as an investment destination, it added.
The government has undertaken reforms across multiple sectors to liberalise 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.
From 2019 to 2024, notable measures included allowing 100% 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% to 100% for companies investing their entire premium within India.
(With inputs from PTI)