FDI inflows grow 13% to $50 bn in FY25

New Delhi: Foreign direct investment in India grew 13 per cent at $50 billion during the entire previous financial year, but fell 24.5 per cent year-on-year to $9.34 billion in the January-March quarter of FY25, according to the government data released on Tuesday.

FDI inflows during January-March 2023-24 stood at $12.38 billion. These were $44.42 billion in the full 2023-24 fiscal.

During the October-December quarter of 2024-25 also, the inflows were contracted by 5.6 per cent year-on-year to $10.9 billion due to global economic uncertainties.

Total FDI, which includes equity inflows, reinvested earnings and other capital, grew by 14 per cent to $81.04 billion during the last financial year. It is the highest in the last three years. The same stood at $71.3 billion in 2023-24.

During 2024-25, Singapore emerged as the largest source of FDI with $14.94 billion inflows. It was followed by Mauritius ($3.73 billion against $8.34 billion), the US ($5.45 billion), the Netherlands ($4.62 billion), the UAE ($3.12 billion), Japan ($2.47 billion), Cyprus ($1.2 billion), UK ($795 million), Germany ($469 million), and Cayman Islands ($371 million).

However, the data showed that when compared to 2023-24, the inflows had declined from the Netherlands, Japan, the UK, and Germany.

Singapore accounts for 30 per cent share, Mauritius (17 per cent) and the US (11 per cent).

Sectorally, inflows rose in services, trading, telecommunication, automobile, construction development, non-conventional energy and chemicals.

However, it has contracted in computer software and hardware, construction (infrastructure activities), and pharmaceuticals.

FDI in services has increased to $9.34 billion during 2024-25 as against $6.64 billion in 2023-24. As per the data, FDI inflows in non-conventional energy stood at $4 billion as against $3.76 billion in 2023-24.

The data also showed that Maharashtra received the highest inflow of $19.6 billion during the last fiscal. It was followed by Karnataka ($6.61 billion), Delhi ($6 billion), Gujarat (about $5.7 billion), Tamil Nadu ($3.68 billion), Haryana ($3.14 billion), and Telangana ($2.99 billion).

Maharashtra accounted for the highest share (39 per cent) of total FDI equity inflows, Karnataka (13 per cent) and Delhi (12 per cent).

The government has put in place an investor-friendly Foreign Direct Investment (FDI) policy, under which most sectors are open for 100 per cent overseas inflows through the automatic route.

“This policy is reviewed on an ongoing basis to ensure that India remains an attractive and competitive investment destination,” the commerce and industry ministry said in a statement.

It added that India is also becoming a hub for manufacturing FDI, which grew by 18 per cent in 2024-25 to $19.04 billion compared to $16.12 billion in 2023-24.

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.