The Government has put in place an investor-friendly Foreign Direct Investment (FDI) policy, under which most sectors are open for 100% FDI through the automatic route.
FDI Inflows Growth
FDI inflows have seen a steady rise from USD 36.05 billion in FY 2013–14 to a projected USD 81.04 billion in FY 2024–25, marking a 14% increase from FY 2023–24.
| Financial Year | FDI Inflows (USD Billion) |
| 2013-14 | 36.05 |
| 2023-24 | 71.28 |
| 2024-25 (Provisional) | 81.04 |
Sector-wise FDI Distribution
Top Sectors
The services sector emerged as the top recipient of FDI equity in FY 2024–25, attracting 19% of total inflows, followed by computer software and hardware (16%) and trading (8%). FDI into the services sector rose by 40.77% to USD 9.35 billion from USD 6.64 billion in the previous year.
Manufacturing Growth
FDI in manufacturing grew by 18%:
| Financial Year | FDI Inflows (USD Billion) |
| FY 2024–25 | USD 19.04 billion |
| FY 2023–24 | USD 16.12 billion |
State Distribution of FDI FY 2024-25
- Maharashtra ccounted for the highest share 39%
- Karnataka: 13%
- Delhi: 12%
Among source countries, Singapore led with 30% share, followed by Mauritius (17%) and the United States (11%).
Historical FDI Trends
- Total FDI over Eleven Years (2014-25): USD 748.78 billion, a 143% increase from USD 308.38 billion (2003-14).
- Total FDI over 25 Years: USD 1,072.36 billion.
Increase in Number of Source Countries for FDI
India is growing global appeal as an investment destination
| FY 2024–25 | 112 |
| FY 2013–14 | 89 |
Regulatory Reforms
2014-2019 Reforms
Increased FDI caps in Defence, Insurance, and Pension sectors; liberalized policies for Construction and Civil Aviation.
2019-2024 Measures
Allowed 100% FDI in coal mining, contract manufacturing, and insurance intermediaries.
2025 Proposal
Increase FDI limit from 74% to 100% for companies investing their entire premium in India.
Conclusion
These trends reaffirm India’s position as a preferred global investment hub, enabled by a proactive policy framework, an evolving business ecosystem, and rising international confidence in India’s economic resilience.
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