Indian Economy News

Key investment destination: FDI inflows in India cross $1 trillion

  • IBEF
  • December 9, 2024

Foreign direct investment (FDI) inflows into India have surpassed the US$ one trillion mark from April 2000 to September 2024, reinforcing the nation's position as a prominent and secure investment destination on the global stage. 

Data from the Department for Promotion of Industry and Internal Trade (DPIIT) indicates that the total FDI, encompassing equity, reinvested earnings, and other capital, reached US$ 1,033.40 billion during this timeframe. Approximately 25% of the FDI originated from Mauritius, followed closely by Singapore at 24%, the United States at 10%, and the Netherlands at 7%. Other notable contributors included Japan (6%), the United Kingdom (5%), the UAE (3%), with the Cayman Islands, Germany, and Cyprus each accounting for 2%.  The sectors that attracted the highest FDI inflows included services, computer software and hardware, telecommunications, trading, construction development, automobiles, chemicals, and pharmaceuticals. Since 2014, India has reportedly drawn in a cumulative FDI inflow of US$ 667.4 billion, reflecting a significant increase of 119% compared to the preceding decade (2004-14). 

This influx of investment spans across 31 states and 57 sectors, contributing to growth in various industries. Most sectors, with the exception of those deemed strategically important, are open to 100% FDI under the automatic route. In the manufacturing sector alone, FDI equity inflows over the past decade (2014-24) amounted to USD 165.1 billion, representing a 69% increase from the previous decade (2004-14), which recorded inflows of USD 97.7 billion, as stated by an official source. 

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

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