India's FDI Landscape: A Tale of Growth Amid Decline

Foreign direct investment (FDI) in India decreased by 24.5% to USD 9.34 billion in the January-March quarter of 2024-25. Despite this decline, FDI grew by 13% to USD 50 billion over the prior fiscal year. The October-December 2024-25 quarter also saw reduced inflows due to global uncertainties.

Foreign direct investment (FDI) in India saw a notable dip, with the inflow dropping to USD 9.34 billion in the January-March quarter of 2024-25, marking a 24.5% decline year-on-year, as per government data released recently.

The January-March 2023-24 period witnessed FDI inflows of USD 12.38 billion, while the full 2023-24 fiscal year recorded USD 44.42 billion. Economic uncertainties globally contributed to a 5.6% year-on-year contraction in FDI during the October-December 2024-25 quarter, amounting to USD 10.9 billion.

Despite these quarterly downturns, total FDI, comprising equity inflows, reinvested earnings, and other capital, surged by 14% to reach USD 81.04 billion in the last fiscal year. This figure represents the highest level in the past three years, compared to USD 71.3 billion in 2023-24.