India records 81.04 billion dollars in foreign direct investment flow in the fiscal year 2024-25, and leads the services sector with 40 % growth

The Ministry of Trade and Industry said on Tuesday that India has received an initial foreign investment flow (FDI) worth $ 81.04 billion (temporary) in the fiscal year 2024-25, which reflects a 14 % increase from 71.28 billion dollars in the previous year. The Ministry attributed the growth to the “friendly” foreign investment policy that is still reviewed to ensure competitiveness and attractiveness.

According to the statement, the services sector has emerged as the best recipient in foreign direct investment shares in the fiscal year 2024-25, which represents 19 % of the total flows. The sector received 9.35 billion dollars, an increase of 40.77 % from 6.64 billion dollars in the fiscal year 2023-24. This was followed by 16 % computer and hardware programs, and 8 % trading.

The foreign direct investment company in India also showed a strong momentum, increasing by 18 % to 19.04 billion dollars in the fiscal year 2024-25, compared to $ 16.12 billion in the previous year.

Between the Indian states, Maharashtra state attracted the highest share of foreign direct investment stock flows, followed by the state of Karnataka (13 %) and Delhi (12 %). On the country’s front front, Singapore contributed 30 % of the total foreign direct investment flows, followed by Mauritius by 17 % and the United States by 11 %.

Cutting, India attracted 748.78 billion US dollars in foreign direct investment over the past eleven last year (2014-25), which represents a 143 % increase from 308.38 billion US dollars during the previous eleven years (2003-14). This represents approximately 70 % of 1,072.36 billion dollars of foreign direct investment that India has received in the past 25 years.

The number of countries of the foreign direct investment source also increased from 89 in the fiscal year 2013-14 to 112 in the fiscal year 2024-25, highlighting the growing global call to India as an investment destination.

In terms of organizational reform, India has liberated the standards of foreign direct investment across the main sectors in recent years. Between 2014 and 2019, direct foreign investment hats in defense, insurance and pensions were increased, while civil aviation, construction and one branded retail trade were opened. Between 2019 and 2024, 100 % of foreign direct investment was allowed under the automatic track in coal mining, contracts manufacturing, and insurance brokers.

In 2025, the Federation’s budget suggested raising the foreign investment limit from 74 % to 100 % for insurance companies that invest all its installments locally.

“These trends reaffirm the position of India as a preferred global investment center,” the ministry said, noting the continuous reforms of policies, the ecosystem of advanced business, and the growing global investor’s confidence.