India's FDI Trends: Challenges and Growth Amidst Global Uncertainty

Foreign direct investment in India fell by 5.6% year-on-year to USD 10.9 billion from October to December 2023 due to global uncertainties. Despite a decline in some regions, cumulative FDI inflows grew by 27% during April-December 2024-25, with significant contributions from countries like Singapore and the US.

Despite global economic uncertainties, foreign direct investment (FDI) in India experienced a 5.6% decline year-on-year, falling to USD 10.9 billion for the October-December quarter of fiscal year 2023-24, according to the latest government data.

The Department for Promotion of Industry and Internal Trade (DPIIT) revealed that while FDI inflows saw a dip in this particular quarter, the cumulative inflow during April-December 2024-25 recorded a substantial growth of 27%, reaching USD 40.67 billion from USD 32 billion during the same period in the previous year.

Major contributors to this growth were countries such as Singapore, the US, and the Netherlands, although declines in investment were observed from Mauritius, Japan, the UK, and Germany. Sectoral growth was noted in services, software, and non-conventional energy, with Maharashtra emerging as the top state recipient.