India Secures Record $81.04 Billion in FDI in FY 2024–25

India has recorded a historic milestone by securing USD 81.04 billion in Foreign Direct Investment (FDI) during the fiscal year 2024–25, registering a 14% growth over the previous year. This surge, driven by robust inflows into the services and manufacturing sectors, reflects the success of India’s liberalized investment regime and its rising prominence as a global business destination.

Why in News?

India’s FDI inflows in FY 2024–25 have reached an all-time high of USD 81.04 billion. The services sector led this growth with a 40.77% rise in FDI equity inflow, positioning India as a dynamic and attractive investment hub amid global economic uncertainties.

Key Highlights

• Total FDI Inflow (FY 2024–25): USD 81.04 billion, up 14% from FY 2023–24.

Top Sectors

• Services Sector: USD 9.35 billion (40.77% YoY growth)
• Computer Software & Hardware: 16% of total FDI
• Trading Sector: 8% of total FDI
• Manufacturing Sector: USD 19.04 billion (18% growth from previous year)

Top FDI-Receiving States

• Maharashtra: 39% of total FDI equity
• Karnataka: 13%
• Delhi: 12%

Top Source Countries

• Singapore: 30% share of total inflows
• Mauritius: 17%
• United States: 11%

Long-Term FDI Growth

• FDI from FY 2014–25: USD 748.78 billion
• FDI from FY 2003–14: USD 308.38 billion
• Total FDI over 25 years: USD 1,072.36 billion

Growing Global Confidence

• Source Countries: Increased from 89 (FY 2013–14) to 112 (FY 2024–25)

Policy Reforms Boosting FDI

2014–19 Reforms

• Raised FDI caps in Defence, Insurance, and Pension
• Liberalized Construction, Civil Aviation, and Retail sectors

2019–24 Reforms

• 100% FDI allowed under automatic route in Coal Mining, Contract Manufacturing, and Insurance Intermediaries
• 2025 Union Budget: Proposed raising FDI limit to 100% for companies investing entire premium within India

Significance

• India’s record FDI inflow reflects investor confidence, a liberalized economic policy environment, and the country’s emergence as a preferred destination for global capital.
• It bolsters economic growth, job creation, and technology transfer, contributing to India’s Viksit Bharat (Developed India) vision.