In May 2025, the Ministry of Commerce & Industry(MoC&I) reported that India recorded provisional Foreign Direct Investment (FDI) inflows of USD 81.04 billion in the Financial Year 2024–25(FY25), marking a 14% rise compared to USD 71.28 billion received in FY24.
- FDI has steadily grown from USD 36.05 billion in FY14, reflecting strong investor confidence.
Note: FDI is when a company or government invests in a business or assets in another country, aiming to maintain a lasting interest and significant control over its operations.
Key Highlights:
i.Over the past eleven financial years (FY14–FY25), India attracted USD 748.78 billion in FDI, reflecting a 143% increase compared to the USD 308.38 billion received during FY03–FY14.
- This constitutes nearly 70% of the total USD 1,072.36 billion in FDI received over the past 25 years.
ii.Also, the number of source countries for FDI increased from 89 in FY14 to 112 in FY25, highlighting India’s growing global appeal.
ii.The services sector emerged as the top recipient of FDI equity in FY25, 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.
iii.India is also becoming a hub for manufacturing FDI, which grew by 18% in FY25, reaching USD 19.04 billion compared to USD 16.12 billion in FY24.
Top FDI Sources and Destinations in FY25:
i.Maharashtra accounted for the highest share (39%) of total FDI equity inflows in FY25, followed by Karnataka (13%) and Delhi (12%).
ii.In source countries, Singapore led with 30% share, followed by Mauritius (17%) and the United States of America (USA) (11%).
India’s FDI evolution: 2014-2025:
i.Between 2014 and 2019, significant reforms included increased FDI caps in:
- Defence, Insurance, and Pension sectors, and liberalized policies for Construction, Civil Aviation, and Single Brand Retail Trading.
ii.From 2019 to 2024, notable measures included allowing 100% FDI under the automatic route in coal mining, contract manufacturing, and insurance intermediaries.
iii.In 2025, the Union Budget proposed increasing the FDI limit from 74% to 100% for companies investing their entire premium within India.
Recent Related News:
As of April 2025, The Indian pharmaceutical industry is the world’s 3rd largest by volume and 11th largest in terms of value. India is globally the largest supplier of generic drugs, accounting for 20% of global supply. India is also one of the biggest suppliers of low-cost vaccines in the world.
