India's FDI Landscape: An Overview of Recent Trends

Foreign direct investment in India witnessed a decline to USD 9.34 billion in early 2025 but surged to USD 50 billion in the previous fiscal year. Despite a drop from regions like Japan and Germany, sectors such as services and telecommunication saw growth. Singapore remains a key investor.

India's foreign direct investment (FDI) picture has shown mixed results, according to recent government data. FDI inflows decreased by 24.5% to USD 9.34 billion in the first quarter of 2024-25, compared to the same period last year. However, the previous fiscal year saw an overall growth of 13%, totaling USD 50 billion.

Despite certain declines, notably from countries like Japan and Germany, sectors like services, trading, and telecommunications experienced increased FDI. Singapore stood out as the major contributor, accounting for 30% of the inflows, followed by Mauritius and the United States.

The Indian government maintains a liberal FDI policy, with most sectors open to full foreign participation through the automatic route. Over the past eleven years, India has attracted significant FDI, underscoring its ongoing appeal to global investors.