Healthy FDI inflows to go on in 2025, thanks to some norms tweak

New Delhi: India, averaging over $4.5 billion in monthly foreign direct investment (FDI) inflows since January this year despite global uncertainties and challenges, is tipped to sustain the trend in 2025 on the back of measures by the Prime Minister Narendra Modi-led government to enhance the country’s

investor-friendly appeal.

Investor-friendly policies, strong return on investments, skilled manpower, reduced compliance burdens, decriminalising minor industry-related offences, national single window system for streamlined approvals and clearances and production linked incentive (PLI) schemes are key measures for keeping foreign investors focused on India.

Further to ensure that India remains an investor-friendly destination, the government reviews FDI policy on an ongoing basis and makes changes from time to time after having intensive consultations with stakeholders including apex industry chambers, associations and representatives of industries.

In the January-September period this year, FDI into the country rose by about 42 per cent to $42.13 billion. The inflow was at $29.73 billion in the year-ago period.

The inflows during April-Sept 2024-25 grew by 45 per cent to $ 29.79 billion against $20.48 billion in the same period previous fiscal. Total FDI in 2023-24 was a healthy $71.28 billion.

“Going by the trend, the country will continue to attract healthy FDI in 2025 as well,” Department for Promotion of Industry and Internal Trade (DPIIT) secretary Amardeep Singh Bhatia said. He said that India continues to open up its economy to global investors by raising foreign investment limits, removing regulatory barriers and so on.