India attracts record $81.04 billion in FDI in FY'25, services sector leads growth

New Delhi: India recorded its highest-ever Foreign Direct Investment (FDI) inflow of USD 81.04 billion (provisional) in the financial year 2024–25, registering a 14 percent increase from USD 71.28 billion received in FY 2023–24, according to government data released on Tuesday.

This milestone comes amid a series of investor-friendly reforms and liberalisation measures aimed at boosting investor confidence and making India a competitive destination for global capital. The government noted that FDI inflows have more than doubled over the past decade—from USD 36.05 billion in FY 2013–14—underscoring India's rising global investment appeal.

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Services Sector Tops FDI Inflows

The services sector emerged as the largest recipient, attracting 19 percent of total FDI equity inflows, amounting to USD 9.35 billion — a sharp 40.77 percent increase from the previous year. This was followed by computer software and hardware (16 percent) and trading (8 percent).

Manufacturing FDI also showed strong momentum, growing 18 percent year-on-year to reach USD 19.04 billion, up from USD 16.12 billion in FY 2023–24, further aligning with the government’s "Make in India" initiative.

Maharashtra Leads Among States

Among Indian states, Maharashtra attracted the lion’s share of FDI with a commanding 39 percent of total inflows. It was followed by Karnataka (13 percent) and Delhi (12 percent), cementing their positions as key investment hubs.

Singapore Top Investor Country

On the international front, Singapore continued to be the top source of FDI into India, contributing 30 percent of total inflows. It was followed by Mauritius (17 percent) and the United States (11 percent).

Long-Term Investment Growth

India has attracted USD 748.78 billion in FDI over the last eleven financial years (2014–25), which is a 143 percent increase over the preceding eleven-year period (2003–14), which saw inflows of USD 308.38 billion. This means nearly 70 percent of the total FDI received by India in the past 25 years came during this period.

The number of countries investing in India also rose significantly—from 89 in FY 2013–14 to 112 in FY 2024–25, pointing to a broadening investor base and growing confidence in India’s economy.

Policy Reforms Driving Investment

The robust inflows are backed by continued policy reforms. Between 2014 and 2019, the government eased FDI norms across Defence, Insurance, Pensions, Construction, Civil Aviation, and Single Brand Retail. In the following phase (2019–24), it opened up 100 percent FDI under the automatic route in sectors like coal mining, contract manufacturing, and insurance intermediaries.

In 2025, the Union Budget proposed raising the FDI limit from 74 percent to 100 percent for insurance companies investing their entire premium within India—aimed at increasing capital flow into the insurance sector.

India Reinforces Position as Investment Hub

The government said these positive trends reaffirm India’s status as a preferred global investment hub, backed by a proactive regulatory framework, an evolving business environment, and growing international trust in India’s economic fundamentals.

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