India Receives $81 Billion In FDI Inflows In 2024–25: Commerce Ministry

Foreign-direct-investment inflows rose 14% to $81 billion in fiscal 2024–25, according to a press release by the Ministry of Commerce and Industry on Tuesday.

FDI inflows for the financial year 2023-24 totalled up to $71.28 billion.

The ministry credits this rise to an "investor-friendly" Foreign Direct Investment policy, under which most sectors are open for 100% FDI through the automatic route. This policy is reviewed on an ongoing basis with the intention to keep India an attractive and competitive investment destination.

The services sector emerged as the top recipient of FDI in fiscal 2024–25, attracting 19% of total inflows, followed by computer software and hardware (16%) and trading (8%). The FDI into the services sector rose 40.77% to $9.35 billion from $6.64 billion in the previous year.

The ministry noted that India is also becoming a hub for manufacturing FDI, which grew 18% in financial year 2024–25, reaching $19.04 billion compared to $16.12 billion in fiscal 2023–24.

Maharashtra accounted for the highest share (39%) of total FDI equity inflows in fiscal 2024–25, followed by Karnataka (13%) and Delhi (12%). Among source countries, Singapore led with 30% share, followed by Mauritius (17%) and the United States (11%).

Over the last 11 financial years (2014–25), India attracted FDI worth $748.78 billion, reflecting a 143% increase over the previous 11 years (2003–14), which saw $308.38 billion in inflows. This constitutes nearly 70% of the total $1,072.36 billion in FDI received over the past 25 years, according to the release.

Additionally, the number of source countries for FDI increased from 89 in fiscal 2013–14 to 112 in fiscal 2024–25.

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.

From 2019 to 2024, notable measures included allowing 100% 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% to 100% for companies investing their entire premium within India.