India has registered a significant rise in foreign direct investment (FDI) inflows, reaching a provisional total of USD 81.04 billion in the financial year 2024–25. This marks a 14% jump from the USD 71.28 billion recorded in the previous fiscal year, showcasing the country’s growing appeal as a global investment destination.
The impressive surge in FDI is largely attributed to the government’s proactive stance on reforming policies to enhance competitiveness and investor confidence. Strategic sectoral liberalization and continuous regulatory updates have helped reinforce India’s position on the global investment map.
The services sector emerged as the top performer, attracting USD 9.35 billion in FDI—an increase of over 40% from the previous year. It accounted for 19% of the total equity inflows, underlining its critical role in the economy. Following closely were the computer software and hardware sector, which contributed 16%, and the trading sector at 8%.
India’s manufacturing sector also witnessed robust growth, with FDI inflows rising 18% year-on-year to USD 19.04 billion. This momentum reflects investor confidence in India’s production-linked initiatives and its push toward becoming a global manufacturing hub.
On the state-wise front, Maharashtra led with the highest share of FDI equity at 39%, followed by Karnataka (13%) and Delhi (12%). Among the top source countries, Singapore maintained its dominance by contributing 30% of the total FDI, trailed by Mauritius (17%) and the United States (11%).
Over the last eleven years (2014–25), India has cumulatively attracted USD 748.78 billion in FDI—an increase of 143% compared to the USD 308.38 billion received in the preceding eleven-year period (2003–14). This accounts for nearly 70% of the total USD 1.07 trillion in FDI received by India in the last 25 years.
The number of source countries investing in India also rose, expanding from 89 in FY 2013–14 to 112 in FY 2024–25. This growth reflects India’s increasing integration into global value chains and its appeal as a stable, reform-driven investment destination.
In recent years, India has liberalized FDI norms across several key industries. Reforms between 2014 and 2019 included raising caps in defence, insurance, and pensions, and allowing increased foreign participation in civil aviation, construction, and retail. Between 2019 and 2024, the government permitted 100% FDI under the automatic route in coal mining, contract manufacturing, and insurance intermediaries.
Further reforms were proposed in the Union Budget 2025, including an increase in the FDI cap for insurance companies investing their premiums entirely within the country—from 74% to 100%.
These developments reflect a strong, forward-looking economic strategy that positions India as a global hub for long-term foreign investment, supported by policy stability, infrastructure growth, and a maturing business environment.