India Hits Historic USD 1 Trillion Milestone in FDI Inflows

India's FDI inflows have reached a historic USD 1 trillion, buoyed by a 26% rise in the first half of fiscal year 2024-25. This growth reflects India's increasing attractiveness to global investors, driven by conducive policies, strategic incentives, and competitive labor costs.

India has achieved a remarkable feat with its gross foreign direct investment (FDI) inflows hitting an impressive USD 1 trillion milestone since April 2000. This achievement was significantly bolstered by a 26% rise in FDI to USD 42.1 billion in the first half of fiscal year 2024-25.

The Ministry of Commerce and Industry emphasized that such growth underscores India's growing appeal as a global investment hub. 'FDI has played a transformative role in India's development, providing substantial non-debt financial resources, facilitating technology transfers, and creating jobs,' the Ministry stated.

Several government initiatives, including 'Make in India', liberalised sectoral policies, and the Goods and Services Tax (GST), have enhanced investor confidence. Moreover, competitive labor costs and strategic incentives continue to attract multinational corporations seeking growth opportunities.

From April 2014 to September 2024, total FDI inflows reached USD 709.84 billion, accounting for 68.69% of the country's total FDI over the past 24 years. The government has established an investor-friendly policy framework, allowing 100% FDI under the automatic route in most sectors while maintaining strategic controls on a few.

In 2024, the Income Tax Act was amended to exempt startups and foreign investors from angel tax and reduce corporate income tax for foreign companies. As India aligns itself with global economic trends, it positions itself for sustainable growth and a stronger presence on the world stage. (ANI)

(With inputs from agencies.)