India records Rs. 6,93,864.5 crore (US$ 81.04 billion) FDI Inflow in FY25

India recorded a Foreign Direct Investment (FDI) inflow of Rs. 6,93,864.5 crore (US$ 81.04 billion) in FY25, marking a 14% increase from the previous year. The services sector was the top recipient of FDI equity, accounting for 19% of total inflows, followed by computer software and hardware (16%) and trading (8%). Maharashtra accounted for the highest share (39%) of total FDI equity inflows, followed by Karnataka (13%) and Delhi (12%). Singapore led as the top source country with a 30% share, followed by Mauritius (17%) and the United States (11%). Over the last eleven financial years (2014-25), India attracted FDI worth Rs. 64,11,054.4 crore (US$ 748.78 billion), reflecting a 143% increase over the previous eleven years (2003-14). The number of source countries for FDI increased from 89 in FY14 to 112 in FY25.
The government has implemented an investor-friendly Foreign Direct Investment (FDI) policy, with most sectors open to 100% FDI through the automatic route. This policy is regularly reviewed to ensure that India remains an attractive investment destination. In the regulatory domain, the government has undertaken transformative reforms across multiple sectors to liberalize foreign direct investment (FDI) norms. Between 2014 and 2019, significant reforms included increased Foreign Direct Investment (FDI) caps in the Defence, Insurance, and Pension sectors, as well as liberalized policies for Construction, Civil Aviation, and Single Brand Retail Trading. From 2019 to 2024, notable measures included allowing 100% foreign direct investment (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. These trends reaffirm India's position as a preferred global investment hub.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.