The Government put in place an investor-friendly Foreign Direct Investment (FDI) policy, under which most sectors were open for 100 percent FDI through the automatic route. This policy was reviewed on an ongoing basis to ensure that India remained an attractive and competitive investment destination. As a result, FDI inflows steadily rose—from USD 36.05 billion in FY 2013–14 to USD 81.04 billion (provisional) in FY 2024–25, marking a 14 percent increase from USD 71.28 billion in FY 2023–24.
The services sector emerged as the top recipient of FDI equity in FY 2024–25, attracting 19 percent of total inflows, followed by computer software and hardware at 16 percent, and trading at 8 percent. FDI into the services sector rose by 40.77 percent to USD 9.35 billion from USD 6.64 billion in the previous year.
The emergence of India as a major manufacturing hub in recent years attracted more FDI, which grew by 18 percent in FY 2024–25, reaching USD 19.04 billion compared to USD 16.12 billion in FY 2023–24.
Among the states, Maharashtra accounted for the highest share (39 percent) of total FDI equity inflows in FY 2024–25, followed by Karnataka with 13 percent and Delhi with 12 percent. Among source countries, Singapore led with a 30 percent share, followed by Mauritius with 17 percent and the United States with 11 percent.
Over the eleven financial years from 2014 to 2025, India attracted FDI worth USD 748.78 billion, reflecting a 143 percent increase over the previous eleven years (2003–14), which saw USD 308.38 billion in inflows. This represented nearly 70 percent 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 FY 2013–14 to 112 in FY 2024–25, highlighting India’s growing global appeal as an investment destination.
In the regulatory domain, the Government undertook transformative reforms across multiple sectors to liberalise FDI norms. Between 2014 and 2019, it implemented significant reforms such as increasing FDI caps in Defence, Insurance, and Pension sectors, and liberalising policies for Construction, Civil Aviation, and Single Brand Retail Trading.
From 2019 to 2024, it introduced further measures, including allowing 100 percent 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 percent to 100 percent for companies investing their entire premium within India.
These trends reaffirmed India’s position as a preferred global investment hub, supported by a proactive policy framework, a maturing business ecosystem, and increasing international confidence in India’s economic resilience.
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