FDI Inflows Reach Record High In 3 Years In FY25, But Take A Hit In Jan-March Quarter

Total FDI, which includes equity inflows, reinvested earnings and other capital, grew by 14 per cent to USD 81.04 billion during the last financial year. It is the highest in the last three years.

Maharashtra accounted for the highest share (39 per cent) of total FDI equity inflows, Karnataka (13 per cent) and Delhi (12 per cent).

Source : ABPLIVE AI

Foreign direct investment in India fell 24.5 per cent year-on-year to USD 9.34 billion in the January-March quarter of 2024-25 but grew 13 per cent at USD 50 billion during the entire previous financial year, according to the government data released on Tuesday.

FDI inflows during January-March 2023-24 stood at USD 12.38 billion. These were USD 44.42 billion in the full 2023-24 fiscal.

During the October-December quarter of 2024-25 also, the inflows were contracted by 5.6 per cent year-on-year to USD 10.9 billion due to global economic uncertainties.

Total FDI, which includes equity inflows, reinvested earnings and other capital, grew by 14 per cent to USD 81.04 billion during the last financial year. It is the highest in the last three years. The same stood at USD 71.3 billion in 2023-24.

During 2024-25, Singapore emerged as the largest source of FDI with USD 14.94 billion inflows. It was followed by Mauritius (USD 3.73 billion against USD 8.34 billion), the US (USD 5.45 billion), the Netherlands (USD 4.62 billion), the UAE (USD 3.12 billion), Japan (USD 2.47 billion), Cyprus (USD 1.2 billion), UK (USD 795 million), Germany (USD 469 million), and Cayman Islands (USD 371 million).

However, the data showed that when compared to 2023-24, the inflows had declined from the Netherlands, Japan, the UK, and Germany.

Singapore accounts for 30 per cent share, Mauritius (17 per cent) and the US (11 per cent).

Sectorally, inflows rose in services, trading, telecommunication, automobile, construction development, non-conventional energy and chemicals.

However, it has contracted in computer software and hardware, construction (infrastructure activities), and pharmaceuticals.

FDI in services has increased to USD 9.34 billion during 2024-25 as against USD 6.64 billion in 2023-24. As per the data, FDI inflows in non-conventional energy stood at USD 4 billion as against USD 3.76 billion in 2023-24.

The data also showed that Maharashtra received the highest inflow of USD 19.6 billion during the last fiscal. It was followed by Karnataka (USD 6.61 billion), Delhi (USD 6 billion), Gujarat (about USD 5.7 billion), Tamil Nadu (USD 3.68 billion), Haryana (USD 3.14 billion), and Telangana (USD 2.99 billion).

Maharashtra accounted for the highest share (39 per cent) of total FDI equity inflows, Karnataka (13 per cent) and Delhi (12 per cent).

The government has put in place an investor-friendly Foreign Direct Investment (FDI) policy, under which most sectors are open for 100 per cent overseas inflows through the automatic route.

"This policy is reviewed on an ongoing basis to ensure that India remains an attractive and competitive investment destination," the commerce and industry ministry said in a statement.

It added that India is also becoming a hub for manufacturing FDI, which grew by 18 per cent in 2024-25 to USD 19.04 billion compared to USD 16.12 billion in 2023-24.

Over the last eleven financial years (2014-25), India attracted FDI worth USD 748.78 billion, reflecting a 143 per cent increase over the previous eleven years (2003-14), which saw USD 308.38 billion in inflows.

This constitutes nearly 70 per cent of the total USD 1,072.36 billion in FDI received over the past 25 years.

Additionally, the number of source countries for FDI increased from 89 in 2013-14 to 112 in 2024-25, underscoring India's growing global appeal as an investment destination, it added.

The government has undertaken reforms across multiple sectors to liberalise FDI norms. Between 2014 and 2019, significant reforms included increased FDI caps in Defence, Insurance, and Pension sectors, and liberalised policies for Construction, Civil Aviation, and Single Brand Retail Trading.

From 2019 to 2024, notable measures included allowing 100 per cent FDI under the automatic route in coal mining, contract manufacturing, and insurance intermediaries. In 2025, the Union Budget proposed increasing the FDI limit from 74 per cent to 100 per cent for companies investing their entire premium within India. 

(This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)