India attracted USD 81.04 billion in Foreign Direct Investment (FDI) during FY 2024–25, marking a 14% increase from USD 71.28 billion in FY 2023–24.

Data about FDI in India

• 14% growth in FDI inflows compared to previous year (USD 71.28 billion in FY 2023–24).  
• Services Sector Leads FDI Growth: The services sector received the highest FDI equity inflow, accounting for 19% of the total.
  • Value: FDI in services rose by 40.77%, from USD 6.64 billion in FY 2023–24 to USD 9.35 billion in FY 2024–25.
• Other Leading Sectors:
  • Computer Software & Hardware: 16% share
  • Trading: 8% share
• Manufacturing FDI on the Rise: India is also emerging as a manufacturing FDI hub, with investments in this sector growing by 18%, from USD 16.12 billion to USD 19.04 billion in FY 2024–25.
• Long-Term FDI Trends (2014–2025): India attracted USD 748.78 billion in FDI during FY 2014–25—a 143% increase over the USD 308.38 billion received in FY 2003–14.
  • This accounts for nearly 70% of the total FDI inflow (USD 1,072.36 billion) received over the past 25 years.
• Increasing Global Interest in India: The number of source countries for FDI grew from 89 (FY 2013–14) to 112 (FY 2024–25), reflecting India’s rising global appeal as a preferred investment destination.

State-wise FDI Distribution

• Maharashtra tops with 39% share of total FDI, followed by Karnataka (13%) and Delhi (12%).  

Major FDI Source Countries

• Singapore remains the largest investor (30% share), followed by Mauritius (17%) and the U.S. (11%). 

Policy Reforms Driving FDI Growth

• 2014–2019 Reforms: Increased FDI limits in Defence, Insurance, and Pension sectors.  
  • Liberalized policies for Construction, Aviation, and Retail.  
• 2019–2024 Reforms: 100% FDI allowed in coal mining, contract manufacturing, and insurance intermediaries.  
• 2025 Union Budget Proposal: FDI limit in insurance raised from 74% to 100% for companies investing premiums in India.  

Foreign Direct Investment (FDI)

• Foreign Direct Investment (FDI) refers to an investment by an individual or a company in one country into business interests located in another country.
• Allowed 100% FDI in some sectors: IT and Software Development, E-commerce, Renewable Energy, Automobile Sector, Food Processing
• FDI prohibited in certain sectors: Lottery and Gambling, Atomic Energy, Tobacco, Chit Funds
• Two routes of FDI:
• • Automatic Route: No prior government approval is required. Investment is made directly in permitted sectors, subject to FDI policy regulations. Examples: Infrastructure, IT, and most manufacturing sectors.
  • Government Approval Route: Requires prior approval from the relevant government authorities or ministries. Examples: Defense, media, and multi-brand retail sectors.

Regulatory Framework of FDI in India

• Foreign Direct Investment (FDI) in India is currently regulated by the FDI Policy 2020 and the FEMA (Non-debt Instrument) Rules, 2019.
• The Department for Promotion of Industry and Internal Trade (DPIIT) serves as the primary regulatory authority for FDI in India.
• The Reserve Bank of India (RBI) also plays a key role as it is responsible for the implementation of FDI regulations.

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