Foreign Direct Investment Increases by 14% to $81 billion in Fiscal Year 25; Equity Inflows Exceed $50 billion
Singapore Tops India’s FDI Source List with $14.94 Billion
India received a total of $81.04 billion in gross Foreign Direct Investment (FDI) during 2024–25, showing a 14% increase from the previous year, as per provisional government data. FDI equity inflows exceeded $50 billion, marking a 13% year-on-year growth. However, in the final quarter of the fiscal year, gross FDI declined by 24.5% to $9.34 billion.
In the 2023–24 fiscal year, India experienced a 13% growth in FDI, attracting $50 billion compared to $44.42 billion in the preceding year. Total FDI, including equity inflows, reinvested earnings, and other capital, rose by 14% to reach $81.04 billion, the highest level in three years. Singapore remained India’s leading FDI source with $14.94 billion, followed by the US at $5.45 billion and Mauritius at $3.73 billion. Nevertheless, inflows from countries like the Netherlands, Japan, UK, and Germany saw a decrease.
Among different sectors, growth was observed 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 decline in FDI. The top three states receiving FDI were Maharashtra ($19.6 billion), Karnataka ($6.61 billion), and Delhi ($6 billion).
The government has implemented an investor-friendly FDI policy, allowing most sectors to receive 100% overseas inflows through the automatic route. Over the past 11 financial years, India attracted FDI worth $748.78 billion, exhibiting a 143% increase from the previous 11 years. The government has made reforms across various sectors to liberalize FDI norms in order to enhance India’s attractiveness as an investment destination.
The Union Budget of 2025 proposed increasing the FDI limit from 74% to 100% for companies investing their entire premium within India, further encouraging foreign investment in the country.
