FDI in India Hits $81 Billion in 2024–25: A Strong Sign of Global Confidence
India has recorded Foreign Direct Investment (FDI) inflows of $81.04 billion in the financial year 2024–25, marking a 14% year-on-year growth and the highest FDI in three years. The news was confirmed by Amardeep Singh Bhatia, Secretary of the Department for Promotion of Industry and Internal Trade (DPIIT). According to him, this momentum is expected to continue as the Indian economy strengthens its global partnerships and industrial competitiveness.
Key Drivers Behind the Surge in FDI
Several factors have contributed to this FDI surge, reaffirming India’s position as a prime global investment destination:
Free Trade Agreements (FTAs)
India is actively negotiating FTAs with multiple countries.
These FTAs aim to open market access, lower trade barriers, and promote cross-border investments.
According to Bhatia, the agreements will benefit both domestic and international businesses.
Production-Linked Incentive (PLI) Schemes
Sectors like electronics, semiconductors, and renewable energy are witnessing a boost.
The PLI scheme has improved India’s manufacturing ecosystem, attracting global companies.
Indian Industry Going Global
Indian firms are also investing abroad to acquire tech, secure raw materials, and reach international markets.
This reflects India's evolving role in global supply chains.
Country-Wise FDI Contributions in 2024–25
Singapore: $14.94 billion
Mauritius: $8.34 billion
United States: $5.45 billion
Netherlands: $4.62 billion
United Arab Emirates: $3.12 billion
Japan: $2.47 billion
Cyprus: $1.2 billion
United Kingdom: $795 million
Germany: $469 million
Cayman Islands: $371 million
These figures highlight the diverse global confidence in India, led by strong interest from Southeast Asia, North America, and Europe.
Sectoral Boost and Long-Term View
Bhatia emphasized the need for Indian businesses to:
Think long-term and not be deterred by short-term global uncertainties.
Expand beyond domestic markets and participate in international ecosystems.
Leverage technology partnerships and sustainable growth practices.
He called upon Indian industry to adopt a global mindset to fully capitalize on these structural tailwinds.
Conclusion
India’s impressive FDI inflow of $81 billion in FY 2024–25 is more than just a number—it’s a vote of confidence in India’s reforms, manufacturing capabilities, and trade diplomacy. With sustained policy support, increased outbound investments by Indian companies, and expanding FTAs, India is on track to become a preferred global hub for capital, innovation, and enterprise.
Written by Indira Securities SEBI Registered with 30 plus years of experience in Stock Market!!!