India attracted Rs84.26 billion in net investments from sovereign wealth funds in FY25, reinforcing its appeal as a destination for long-term global capital. The data, shared in Parliament, highlights sustained confidence in India’s economic trajectory despite a moderation from the Rs476.04 billion received in FY24 and Rs154.46 billion in FY23. FY22 was the only year in recent times to witness a net outflow, amounting to Rs38.25 billion.
Between FY22 and FY25, financial services emerged as the top sectoral draw, receiving Rs285.62 billion in sovereign fund inflows. The IT sector followed with Rs191.35 billion, while healthcare and telecom attracted Rs78.30 billion and Rs70.53 billion respectively. These allocations reflect investor alignment with India’s strengths in digital infrastructure, technology, and healthcare innovation.
The Finance Ministry noted that while foreign direct investment inflows from sovereign and pension funds are not tracked separately, their portfolio investments are monitored by sector. The government has implemented tax exemptions, regulatory relaxations, and liberalised FDI norms to attract long-term foreign capital. Over 95 per cent of FDI now enters through the automatic route, with the Union Budget 2025 raising the FDI cap in insurance to 100 per cent from 74 per cent.
Officials and experts view these inflows as patient capital that supports India’s development goals, particularly in the context of ongoing reforms, infrastructure expansion, and digital transformation.
