Goyal says stability, robust market among factors driving FDI flows into India

India has been seeing growing foreign direct investment (FDI), thanks to its stable regulatory environment, robust domestic market, skilled workforce, and strong rule of law, commerce minister Piyush Goyal said.

Investors from the Middle East, Japan, the European Union (EU), and the US are increasingly identifying the country as a top destination for investment, Goyal told the Press Trust of India (PTI).

“I foresee FDI in India growing rapidly once again, leading to millions of new jobs. Investors from the Middle East, the EFTA region, Japan, the EU, and the US are all realizing that India remains the most preferred destination for FDI,” he told PTI.

According to government data, FDI inflows during the first half of the current fiscal rose by nearly 26% to $42.1 billion.

Sectors where investors have pumped in funds include services, computer software and hardware, telecommunications, trading, construction development, automobile, chemicals, and pharmaceuticals.

The Department for Promotion of Industry and Internal Trade (DPIIT) said cumulative FDI inflows into India crossed the $1 trillion-mark from April 2000 to September 2024, with more than 69% recorded in the period.

This includes $109.2 billion in total FDI during that period, with $708.7 billion coming from equity investments.

While FDI inflows are contributing to India’s economic growth and also generating jobs, disinvestment by investors who had previously made direct investments in India rose to $27.8 billion in the first six months of FY25, up from $23.1 billion during April–August 2023.

Outward FDI in April–September 2024 was at $10.7 billion, compared to $6.5 billion during the same period of FY24.