India's Rising FDI: A Beacon for Global Investors

India has become a prime destination for foreign direct investment (FDI), with 90% of investments facilitated automatically. The cumulative inflows stand at USD 991 billion since 2000, reflecting buoyant economic growth and an investor-friendly policy environment. Key sectors like manufacturing have significantly benefited, seeing notable boosts in inflows.

India is steadily positioning itself as a pioneering hub for foreign direct investment (FDI) as nearly 90% of contributions are facilitated through the automatic route. The Ministry of Commerce and Industry heralds India as a leading beacon for global capital, propelled by its accommodating FDI policies.

Cumulative FDI inflows into India have reached an impressive USD 991 billion between the years 2000 and 2024, with the last decade showcasing a remarkable USD 667 billion influx. The manufacturing sector, in particular, has witnessed a 69% growth in equity inflows, jumping from USD 98 billion between 2004-2014 to USD 165 billion in the decade that followed.

Maintaining its momentum, India amassed USD 22.5 billion in FDI during the first quarter of FY 2024-25, marking a 26% increase from the previous fiscal year. Notably, while most sectors allow 100% investment under the automatic route, strategically sensitive areas such as defense still require regulatory oversight. The Department for Promotion of Industry and Internal Trade (DPIIT), along with other government bodies, navigate the policy landscape to bolster further growth.

(With inputs from agencies.)