India has registered USD 81.04 billion in Foreign Direct Investment (FDI) inflows during FY 2024-25, marking a 14 percent growth compared to the previous fiscal year. The sharp increase reinforces India’s status as one of the world’s most attractive investment destinations, driven by liberalized FDI norms, a dynamic business ecosystem, and steady policy reforms.
The services sector emerged as the top recipient of FDI, attracting 19 percent of total inflows, followed by computer software and hardware (16 percent) and trading (8 percent). Investments in the services sector surged 40.77 percent to USD 9.35 billion, underscoring growing global confidence in India’s digital and business services industries.
India’s manufacturing sector also experienced significant expansion, registering an 18 percent increase in FDI, amounting to USD 19.04 billion, further positioning the country as a key production hub.
Maharashtra led the states in FDI inflow, securing 39 percent of total equity investments, with Karnataka (13 percent) and Delhi (12 percent) following closely behind. Among foreign investors, Singapore ranked first with 30 percent share, followed by Mauritius (17 percent) and the United States (11 percent).
Over the last 11 financial years (2014-2025), India attracted USD 748.78 billion in cumulative FDI, reflecting a 143 percent surge compared to the previous 11 years (2003-2014), when inflows amounted to USD 308.38 billion. This growth accounts for 70 percent of the total USD 1,072.36 billion in FDI received over the past 25 years.
India’s appeal as an investment destination is further validated by the rise in source countries, which expanded from 89 in FY 2013-14 to 112 in FY 2024-25, illustrating broadening global interest in Indian markets.
The Government has continuously liberalized FDI policies across critical sectors, undertaking major reforms from 2014 to 2019, including higher FDI caps in defense, insurance, and pension, as well as relaxed norms for construction, aviation, and retail trading. From 2019 to 2024, further measures enabled 100 percent FDI in coal mining, contract manufacturing, and insurance intermediaries, while the 2025 Union Budget proposed raising the FDI ceiling in insurance from 74 to 100 percent, ensuring greater capital inflows and sectoral expansion.
These trends reaffirm India’s growing stature as a premier global investment hub, backed by a proactive regulatory framework, stable policy environment, and rising international confidence in its economic resilience.
