New Delhi: India’s FDI inflows increased to $81.04 billion in FY 2024-25, marking a 14 per cent increase from $71.28 billion in FY 2023–24, according to a statement issued by the Ministry of Commerce and Industry on Tuesday.
There has been a steady rise in the annual flow of FDI into the country over the last 11 years, from $36.05 billion in FY 2013-14, due to the investor-friendly policy, under which most sectors are open for 100 per cent FDI through the automatic route, the statement said.
The services sector emerged as the top recipient of FDI equity in FY 2024–25, attracting 19 per cent of total inflows, followed by computer software and hardware (16 per cent), and trading (8 per cent). FDI into the services sector rose by 40.77 per cent to $9.35 billion from $6.64 billion in the previous year.
India is also becoming a hub for manufacturing FDI, which grew by 18 per cent in FY 2024–25, reaching $19.04 billion compared to $16.12 billion in FY 2023–24. Maharashtra accounted for the highest share (39 per cent) of total FDI equity inflows in FY 2024–25, followed by Karnataka (13 per cent) and Delhi (12 per cent).
Among source countries, Singapore led with a 30 per cent share, followed by Mauritius (17 per cent) and the United States (11 per cent). Over the last eleven financial years (2014–25), India attracted FDI worth $748.78 billion, reflecting a 143 per cent increase over the previous eleven years (2003–14), which saw $308.38 billion in inflows. This constitutes nearly 70 per cent of the total $1,072.36 billion in FDI received over the past 25 years.
Adding further, the number of source countries for FDI increased from 89 in FY 2013–14 to 112 in FY 2024–25, underscoring India’s growing global appeal as an investment destination.
In the regulatory domain, the government has undertaken transformative reforms across multiple sectors to liberalise FDI norms. Between 2014 and 2019, significant reforms included increased FDI caps in defence, insurance, and pension sectors, and liberalised policies for construction, civil aviation, and single-brand retail trading, the statement said.
From 2019 to 2024, notable measures included allowing 100 per cent 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 per cent to 100 per cent for companies investing their entire premium within India, the statement added.