FDI Inflows Jump 45% to USD 29.79 Billion in H1 FY 2024-25

India’s foreign direct investment (FDI) surged by 45% to USD 29.79 billion in the first half of FY 2024-25, compared to USD 20.5 billion in the same period last year. This growth is attributed to strong inflows in the services, computer, telecom, and pharma sectors, driven by key investors from Mauritius, Singapore, and the US. The July-September quarter alone saw a 43% increase, amounting to USD 13.6 billion, highlighting robust foreign confidence in India’s economic landscape. Maharashtra was the top recipient of FDI, further cementing its role as India’s financial hub.

Key Growth Drivers

Sectoral Growth

FDI surged in services (USD 5.69 billion from USD 3.85 billion), telecom, computer software and hardware, and pharma, reflecting India’s growing technological and service sectors. Non-conventional energy also saw notable FDI inflows, reaching USD 2 billion.

Top Contributing Countries

Major FDI sources included Mauritius (USD 5.34 billion), Singapore (USD 7.53 billion), the US (USD 2.57 billion), and the Netherlands (USD 3.58 billion). However, inflows from Japan and the UK decreased during the period.

Regional Distribution

Top States Receiving FDI

Maharashtra received the highest share of FDI, totaling USD 13.55 billion. Other major recipients included Karnataka (USD 3.54 billion), Telangana (USD 1.54 billion), and Gujarat (USD 4 billion), reflecting India’s evolving industrial and technological hubs.

Comparison with Previous Periods

FDI Growth from April-June 2024

The first quarter (April-June) saw a 47.8% increase in FDI to USD 16.17 billion. In contrast, during the same quarter last year, FDI stood at USD 10.94 billion, indicating a consistent upward trajectory in foreign investments.

Total FDI (Equity + Reinvested Earnings)

The total FDI, including equity, reinvested earnings, and other capital, grew by 28%, reaching USD 42.1 billion in the first half of FY 2024-25, compared to USD 33.12 billion during the same period last year.

Summery of the news

Why in News Key Points
FDI Inflows Increase by 45% FDI in India rose to USD 29.79 billion in April-September 2024, up 45% from USD 20.5 billion in the same period in 2023.
Sectoral Growth Highest FDI growth in the services sector (USD 5.69 billion, up from USD 3.85 billion in 2023). Other sectors like pharma, telecommunication, and computer software/hardware also saw significant inflows.
Top Countries Contributing to FDI Mauritius (USD 5.34 billion), Singapore (USD 7.53 billion), USA (USD 2.57 billion).
Declining FDI FDI from Japan and the UK decreased.
State-wise FDI Inflows Maharashtra received the highest FDI at USD 13.55 billion, followed by Karnataka (USD 3.54 billion), Telangana (USD 1.54 billion), and Gujarat (USD 4 billion).
DPIIT Data Department for Promotion of Industry and Internal Trade (DPIIT) released the FDI data.
FDI in Non-Conventional Energy USD 2 billion inflows in non-conventional energy sector.
FDI Quarterly Performance Q1 (April-June) saw a 47.8% rise in FDI to USD 16.17 billion. Q2 (July-September) saw a 43% increase to USD 13.6 billion.

 

Piyush Shukla

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