The Impressive TimesNew Delhi : India witnessed a robust 14 per cent surge in foreign direct investment (FDI) inflows during the financial year 2024–25, receiving a total of $81.04 billion, up from $71.28 billion in 2023–24. This strong growth underscores global investor confidence in India’s economic resilience and policy reforms, according to a statement issued by the Ministry of Commerce and Industry.
The statement highlighted that the services sector was the top recipient of FDI equity during FY 2024–25, attracting 19 per cent of the total inflows. FDI in this sector rose sharply by 40.77 per cent, reaching $9.35 billion, compared to $6.64 billion in the previous fiscal year. This rise reflects growing investor interest in India’s expanding digital infrastructure, fintech ecosystem, and business process outsourcing industries.
Computer software and hardware followed as the second-largest recipient, accounting for 16 per cent of the total FDI equity inflows. The sector remains a significant draw for foreign capital, driven by India’s skilled IT workforce and the global push for digital transformation. The trading sector secured the third spot with 8 per cent of the total FDI share, indicating steady interest in India’s expanding consumer market.
The Ministry further noted that India is increasingly positioning itself as a global manufacturing hub, with FDI inflows into the manufacturing sector growing by 18 per cent to $19.04 billion in FY 2024–25, up from $16.12 billion in 2023–24. This growth aligns with the government’s ongoing “Make in India” initiative, aimed at boosting domestic production, attracting global supply chains, and creating employment opportunities.
The government attributed the overall FDI growth to its investor-friendly policies and a liberalized regulatory regime. Most sectors are open for 100 per cent FDI under the automatic route, simplifying the entry process for international investors and encouraging strategic investments across key growth areas.
Officials from the Ministry emphasized that India’s improving ease of doing business, along with infrastructure development and targeted sectoral reforms, have played a critical role in attracting higher foreign investments. As global companies diversify their supply chains and seek stable, high-growth markets, India continues to emerge as a preferred destination for long-term investments.
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