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FDI inflows since April 2020 cross $1 trillion milestone
A nearly 26% year-on-year boost in FDI to $42.1 billion in the first half of the current fiscal helped India cross the milestone
Foreign direct investment (FDI) inflows into India since April 2020 have crossed the $1 trillion milestone, the ministry of commerce and industry said in a statement.
A nearly 26% year-on-year boost in FDI to $42.1 billion in the first half of the current fiscal helped India cross the milestone, the statement said.
According to RBI’s November 2024 bulletin, gross inward FDI grew to $42.1 billion during April-September 2024, up from $33.5 billion the previous year.
“Such growth reflects India’s growing appeal as a global investment destination, driven by a proactive policy framework, a dynamic business environment, and increasing international competitiveness,” the statement said.
FDI has played a key role in India’s development by providing substantial non-debt financial resources, boosting technology transfers, and creating employment opportunities.
Easy FDI rules and initiatives such as “Make in India,” liberalized sectoral policies, and the goods and services tax (GST) have enhanced investor confidence, while competitive labor costs and strategic incentives continue to attract global companies, the ministry said.
In the last decade, between April 2014-September 2024, total FDI inflows totaled $709.84 billion, accounting for 68.69% of the overall FDI inflow in the past 24 years, it said.
Taiwanese companies are increasingly shifting their supply chains to India amid global trade tensions, with FDI from Taiwan surpassing $665 million between 2018 and 2024, the statement said.
Mauritius (25%), Singapore (23%), the US (9%), the Netherlands (7%) and Japan (6%) emerged as the top five countries for FDI equity inflows into India in fiscal 2024.
The top five sectors receiving the most FDI in FY24 were services including finance, banking, insurance and others (16%), computer software and hardware (15%), trading (6%), telecom (6%) and automobile (5%).
The top 5 states receiving highest FDI were Maharashtra (30%), Karnataka (22%), Gujarat (17%), Delhi (13%), and Tamil Nadu (5%).
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