FDI Inflows In India Surpass $500 Billion In A Decade; Driven By Key Reforms

India attracted over $500 billion in foreign direct investment (FDI) equity inflows between 2014 and 2024, more than double the $208 billion received in the previous decade, said Sanjay Nayar, President of Assocham.

He highlighted that $300 billion of this came in just the last five years (2019–2024), signalling a sharp upward trend.

Boom In Manufacturing And Digital Infrastructure In India

The manufacturing sector and digital infrastructure have emerged as key beneficiaries.

Since 2014, FDI in computer software and hardware reached $95 billion, while services, including finance, IT, R&D, and consultancy, drew $77 billion.

Smartphone manufacturing saw a dramatic turnaround. In 2014, India imported nearly 80% of its smartphones.

Now, thanks to the PLI scheme, companies like Apple (via Foxconn and Wistron) assemble iPhones in India, and smartphone exports have soared to $21 billion.

Foreign investors are increasingly aligning with India’s green growth goals. Investment in sectors like renewable energy and electric mobility has strengthened India’s role in the global clean-tech value chain, according to Nayar.

FY 2024–25 Sees 14% Jump In FDI

According to the Ministry of Commerce and Industry, FDI inflows reached $81.04 billion in FY 2024–25, up 14% from $71.28 billion the previous year.

Since FY 2013–14, when FDI stood at $36.05 billion, India has seen a consistent rise in annual inflows, supported by policies that allow 100% FDI in most sectors via the automatic route.

Services Sector Leads FDI Inflows In India

In FY 2024–25, the services sector emerged as the top FDI recipient, attracting 19% of total inflows.

It was followed by computer software and hardware (16%) and trading (8%).

FDI into services rose by 40.77% to $9.35 billion, compared to $6.64 billion the previous year.

FDI into manufacturing rose by 18% in FY 2024–25, reaching $19.04 billion from $16.12 billion in FY 2023–24, reaffirming India’s growing appeal as a manufacturing hub.

Maharashtra accounted for 39% of FDI equity inflows in FY 2024–25, followed by Karnataka (13%) and Delhi (12%).

Among source countries, Singapore led with a 30% share, trailed by Mauritius (17%) and the United States (11%).

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