FDI inflows hit 3-yr high, grow 14% to $81 b in FY25
Foreign direct investment (FDI) equity inflow into India fell 24.5% on-year to $9.34 billion in January-March FY25, data released by the Department for Promotion of Industry and Internal Trade (DPIIT) showed.
FDI inflows
in the year-ago period were $12.37 billion. Overall, the FDI equity inflows in FY25 were $50 billion, up 13% on-year from $44.4 billion in 2023-24.
Total FDI, which includes equity inflows, reinvested earnings and other capital, grew 14% to $81.04 billion in FY25, the highest in the last three years and 14% higher than $71.3 billion in FY24.
"The government has put in place an investor-friendly FDI policy, under which most sectors are open for 100% FDI through the automatic route. This policy is reviewed on an ongoing basis to ensure that India remains an attractive and competitive investment destination," the commerce and industry ministry said in a statement.
Live Events
The services sector emerged as the top recipient of FDI equity in FY25, attracting 19% of total inflows, followed by computer software and hardware at 16% and trading at 8%. FDI into the services sector rose 40.77% to $9.35 billion from $6.64 billion in the previous year. "India is also becoming a hub for manufacturing FDI, which grew 18% in FY25, reaching $19.04 billion compared to $16.12 billion in 2023-24," the ministry said.
Maharashtra accounted for the highest share (39%) of total FDI equity inflows in 2024-25, followed by Karnataka (13%) and Delhi (12%). Among source countries, Singapore led with 30% share, followed by Mauritius (17%) and the US (11%).
As per the statement, in the regulatory domain, the government has undertaken transformative reforms across multiple sectors to liberalise FDI norms.
"Between 2014 and 2019, significant reforms included increased FDI caps in defence, insurance and pension sectors, and liberalised policies for construction, civil aviation and single-brand retail trading," it said.
Allowing 100% FDI under the automatic route in coal mining, contract manufacturing and insurance intermediaries were the other measures. "These trends reaffirm India's position as a preferred global investment hub, enabled by a proactive policy framework, an evolving business ecosystem and rising international confidence in India's economic resilience," it said.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
8 hours ago
- Economic Times
No changes in FDI policy for Pakistan, China and other countries sharing land border with India: Sources
Synopsis India FDI The government has clarified that there have been no recent changes to the foreign direct investment (FDI) policy concerning countries sharing land borders with India. The existing Press Note 3, issued in 2020, mandates prior government approval for investments from these nations, including China, Pakistan and others. All FDI proposals undergo a similar scrutiny process. The government has not made any amendments to the foreign direct investment (FDI) policy for countries sharing land border with India, sources said on Wednesday. ADVERTISEMENT In 2020, the government issued Press Note 3 under which investors from these land bordering countries have to mandatorily take prior approval of the government for making investments in any sector. The Press Note 3 is applicable to all the land bordering countries of India in an equal manner, the sources said. The countries are China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar and Afghanistan. All FDI proposals from these nations undergo the similar process of scrutiny and examination as per standard operating procedure for the processing of investment proposals from these nations. "After issuance of this press note, no amendment has been undertaken in the FDI policy relating to investments from countries sharing land border with India," a source said. These remarks are important as certain reports have stated that the approval process for FDI applications from China has been streamlined. ADVERTISEMENT At present, there is an inter-ministerial committee headed by the Home Secretary to consider applications under Press Note 3. The bulk of FDI coming into India falls under the automatic approval route. (You can now subscribe to our Economic Times WhatsApp channel) (Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online. NEXT STORY
Deccan Herald
10 hours ago
- Deccan Herald
No changes in FDI policy for countries sharing land border with India: Sources
These remarks are important as certain reports have stated that the approval process for FDI applications from China has been streamlined.
Time of India
18 hours ago
- Time of India
Fgn investment sends profit outside India: Akhilesh
1 2 Lucknow: Expressing his reservation over the Centre's decision to streamline the processing of Chinese FDI, Samajwadi Party national president Akhilesh Yadav on Tuesday said foreign investment ends up sending the profits outside India. Akhilesh took to X quoting a news report on Centre expediting the approval process for Chinese FDI and said: "Jab videshi nivesh aata hai, to laabh bahar jata hai (When foreign investment comes in, the profit goes out of the country)." The news report that SP chief quoted talked about the Indian government streamlining procedures for clearing FDI proposals from Chinese companies, significantly reducing processing time through regular inter-ministerial committee (IMC) meetings. Government sources claimed that the step was taken following a rise in investment queries from China. This is not the first time that Akhilesh has questioned BJP-led NDA's approach towards FDI in general. In February, the former UP CM had slammed the Centre for allowing 100% FDI in the insurance sector. His premise was that handing over complete control of a sensitive and crisis-driven industry such as the insurance sector to foreign entities was not in the best interest of the country. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like He Did THIS at the Wedding—And His Bride Couldn't Hold Back the Tears Read More Undo He said that the move will put the entire industry to risk. During his stint as the chief minister of UP (2012 to 2017), Akhilesh had maintained a similar stance towards FDI on grounds that it will hurt the interests of the small and medium traders in the country. At one stage he went on to welcome FDI in the multi-brand retail sector but as long as the interest of farmers and small traders were protected. The party leadership even wrote a letter to the then Prime Minister Manmohan Singh opposing any such move. "The current report on preferential treatment for Chinese FDI shows inconsistency in priority of government at the Centre on issues of security and business," said senior SP functionary Sudhir Panwar. "In government-imposed sanctions because of security concerns, there was a big announcement to boost domestic industry. But now, there is again a push for FDI," Panwar said, adding: "It will serve the interest of China not India because of profit motive. " Inset 'BJP govt humiliating teachers in UP' times news network Lucknow: Samajwadi Party chief Akhilesh Yadav on Tuesday said that the BJP government was disrespecting and humiliating the teacher community by not addressing their demands. Extending his party's support to thousands of aspirants who are waiting to appear for recruitment as teachers in the government's basic education department and staging a marathon demonstration outside the Uttar Pradesh Education Service Selection Commission headquarters in Prayagraj, Akhilesh said it was time for the state government to address their concerns. He said the government was not sensitive towards assistant teachers protesting at Eco Garden in Lucknow over their unmet demands. "They are getting only Rs 10,000 as remuneration per month. The worst is that the BJP government wants to silence such protests by using police force. This is even more humiliating," Akhilesh said.
