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India has achieved a historic milestone in foreign direct investment (FDI). It has recently surpassed the USD 1 trillion mark in FDI inflows from April 2000 to September 2024 period. Thereby, establishing India as a safe and a key investment destination globally.
According to the Department for Promotion of Industry and Internal Trade (DPIIT) data, the cumulative FDI stood at $1,033.40 billion during the same period. This includes equity, reinvested earnings and other capital.
FDI Inflow Breakup-
Mauritius accounts for the largest share, that is, 25% of India’s FDI inflow, thus making it the largest source of investment. Singapore comes at second place, accounting for 24% of the FDI inflows. Following this, the U.S. accounted for 10%, the Netherlands 7%, Japan 6%, the U.K. 5% and the UAE 3%. Additionally, the FDI inflow from Germany, Cyrus and the Cayman Islands accounted for 2% each.
In absolute numbers, the FDI inflow from Mauritius stood at $177.18 billion. While the investment from Singapore and the U.S. stood at $167.47 billion and $67.8 billion respectively.
Some of the key sectors which attracted significant FDI inflows are- service sector, computer software and hardware, telecommunications, trading, construction development, automobile, chemicals, and pharmaceuticals.
An Increase of 119%..
As per the Ministry of Commerce and Industry, India has attracted a cumulative FDI inflow of  $667.4 billion from 2014-2024. Thus, registering an increase of 119% in FDI inflows compared to 2004-14.
The FDI equity inflow in the manufacturing sector reached $165.1 billion during 2014-24, registering a 69% increase over the previous decade. During 2004-2014, the FDI equity inflow in manufacturing sector was $97.7 billion.
Commenting on the data, Manav Nagaraj, Partner, Shardul Amarchand Mangaldas & Co, projected a robust FDI momentum. The Hindu quoted him saying, “India as an investment destination has historically been and continues to be attractive for foreign investors across various countries, whether from the U.S., the U.K., continental Europe or Asian countries.”
As per Rumki Majumdar, economist at Deloitte India, the FDI inflows are projected to remain modest in the coming times. Overall, this rise in FDI inflows is of key significance as it reflects investors confidence in the economy. A sustained increase of FDI indicates an improvement in investment climate. It also helps in maintaining a healthy balance of payments account and contributes to the transfer (spill-over) of technology and management skills.