India’s FDI Reaches $81.04 Billion in FY25
India has recorded a robust foreign direct investment (FDI) inflow of $81.04 billion during the financial year 2024–25, marking a 14% increase from the $71.28 billion received in FY 2023–24. This growth reaffirms the country’s position as a favored global investment destination, reflecting confidence among global investors and the strength of India’s economic fundamentals.
The cumulative FDI inflow over the last eleven years (2014–25) stands at $748.78 billion, a remarkable 143% surge compared to the $308.38 billion attracted between 2003 and 2014. In total, 70% of India’s FDI over the past 25 years has been received in the post-2014 period, indicating a sharp upward trend under policy reforms and ease-of-doing-business initiatives.
Services Sector Growth
The services sector led the FDI charts in FY25, accounting for 19% of total equity inflows. Investments into this segment rose 40.77% year-on-year to $9.35 billion, up from $6.64 billion the previous fiscal. Sub-sectors driving this performance include financial services, telecommunications, and information technology.
Trailing behind were the computer software and hardware sectors with 16% of the total FDI share, followed by the trading sector with 8%. Manufacturing also showed promising momentum, growing by 18% to $19.04 billion from $16.12 billion in the previous year, signaling renewed global interest in India’s production capabilities.
Foreign Investment India
Maharashtra retained its top spot among Indian states, securing 39% of the FDI equity inflows, while Karnataka and Delhi attracted 13% and 12%, respectively. On the international front, Singapore emerged as the leading investor with a 30% contribution, followed by Mauritius at 17% and the United States at 11%.
The spectrum of countries investing in India has widened from 89 in FY 2013–14 to 112 in FY 2024–25. This diversification points to India’s expanding appeal across a broader spectrum of global investors, driven by policy stability, infrastructure upgrades, and emerging sectoral opportunities.
Although the FDI equity inflow witnessed a dip of 24.5% in the January–March 2025 quarter, totalling $9.34 billion, the overall yearly performance signals strong long-term investment confidence. It also reflects the evolving nature of investor strategy, shifting from short-term gains to more stable, strategic engagements with the Indian economy.
