India's FDI Surge: A Global Magnet for Investment

India's foreign direct investment (FDI) witnessed impressive growth, hitting USD 81.04 billion in the last fiscal year. Despite some quarterly declines, sectors like services and non-conventional energy saw significant increases. Singapore led the inflow sources, and Maharashtra was the top destination for FDI in India.

Foreign direct investment in India experienced significant developments, as revealed by government data released on Tuesday. Despite a 24.5% year-on-year drop to USD 9.34 billion in the January-March quarter of 2024-25, the entire financial year portrayed a different story with FDI growth of 13% to USD 50 billion.

The previous fiscal year 2023-24 had seen a total FDI of USD 44.42 billion, with the January-March quarter amounting to USD 12.38 billion. A noticeable contraction was also evident in the October-December quarter of 2024-25, as inflows decreased by 5.6%, resulting in USD 10.9 billion due to global economic uncertainties.

Sectorally, the services, trading, telecommunication, and non-conventional energy industries attracted more FDI, whereas computer software and hardware, construction, and pharmaceuticals saw a decline. Government reforms and liberalized policies continue to position India as an attractive investment destination.