FDI inflow into India grows 14% in 2024-25: Commerce Ministry
New Delhi: FDI flows into India increased 14 per cent to USD 81.04 billion in the recently concluded financial year 2024-25, the Commerce Ministry said in a statement Tuesday.
Over the past decade, FDI inflows have seen a steady rise--from USD 36.05 billion in 2013-14 to USD 81.04 billion (provisional) in 2024-25.
The central government has put in place an investor-friendly Foreign Direct Investment (FDI) policy, under which most sectors are open for 100 per cent FDI through the automatic route, the commerce ministry boasted.
The FDI policy is reviewed on an ongoing basis to ensure that India remains an attractive and competitive investment destination, the commerce ministry statement added.
Coming to 2024-25, the services sector emerged as the top recipient of FDI equity, attracting 19 per cent of total inflows, followed by computer software and hardware (16 per cent) and trading (8 per cent).
FDI in the services sector rose by 40.77 per cent to USD 9.35 billion from USD 6.64 billion in the previous year.
India is also becoming a hub for manufacturing FDI, which grew by 18 per cent in 2024-25, reaching USD 19.04 billion compared to USD 16.12 billion in 2023-24.
Maharashtra accounted for the highest share (39 per cent) of total FDI equity inflows in 2024-25, followed by Karnataka (13 per cent) and Delhi (12 per cent).
Among source countries, Singapore led with 30 per cent share, followed by Mauritius (17 per cent) and the United States (11 per cent).
Over the last eleven financial years (2014-25), India attracted FDI worth USD 748.78 billion, reflecting a 143 per cent increase over the previous eleven years (2003-14), which saw USD 308.38 billion in inflows.
This constitutes nearly 70 per cent of the total USD 1,072.36 billion in FDI received over the past 25 years.
Additionally, the number of source countries for FDI increased from 89 in 2013-14 to 112 in 2024-25, said the commerce ministry.
"In the regulatory domain, the Government has undertaken transformative reforms across multiple sectors to liberalize 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," the statement noted.
From 2019 to 2024, notable measures included allowing 100 per cent FDI under the automatic route in coal mining, contract manufacturing, and insurance intermediaries.
In 2025, the Union Budget proposed increasing the FDI limit from 74 per cent to 100 per cent for companies investing their entire premium within India.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Times of Oman
2 hours ago
- Times of Oman
India's forex reserves jump about $7 billion in week ending May 23
New Delhi: India's foreign exchange reserves (forex) jumped $6.992 billion to $692.721 billion in the week ending May 23, official data released by the Reserve Bank of India showed. Estimates suggest that India's foreign exchange reserves sufficiently cover approximately 10-12 months of projected imports. With this weekly jump, the forex kitty is quite close to its all-time high of USD 704.89 billion, reached in September 2024. The latest RBI data showed that India's foreign currency assets (FCA), the largest component of foreign exchange reserves, stood at USD 586.167 billion. The gold reserves currently amount to USD 83.582 billion, according to RBI data. Central banks worldwide are increasingly accumulating safe-haven gold in their foreign exchange reserves kitty, and India is no exception. The share of gold maintained by the Reserve Bank of India (RBI) in its foreign exchange reserves has almost doubled since 2021. In 2023, India added around USD 58 billion to its foreign exchange reserves, contrasting with a cumulative decline of USD 71 billion in 2022. In 2024, the reserves rose by a little over USD 20 billion. Foreign exchange reserves, or FX reserves, are assets held by a nation's central bank or monetary authority, primarily in reserve currencies such as the US Dollar, with smaller portions in the Euro, Japanese Yen, and Pound Sterling. The RBI often intervenes by managing liquidity, including selling dollars, to prevent steep Rupee depreciation. The RBI strategically buys dollars when the Rupee is strong and sells when it weakens.
Times of Oman
2 hours ago
- Times of Oman
India: GST collections in May 2025 up 16.4% to Rs 2.01 lakh crore
New Delhi: The gross Goods and Services Tax (GST) collection rose 16.4 per cent to Rs 201,050 crore, according to official data released on Sunday. In May 2024, the collections were to the tune of Rs 172,739 crore. In the month of May, collections of CGST, SGST, IGST, and cess all rose year-on-year. So far in April-May 2025-26, the GST collections were at Rs 437,767 crore, up 14.3 per cent from Rs 383,006 crore in the same period last year. GST collection in 2024-25 stood at Rs 22 lakh crore, up 9.4 per cent year-on-year. During the financial year 2023-24, the total gross GST collection was recorded at Rs 20.18 lakh crore, with an 11.7 per cent increase. The recent GST collections reflect a positive trajectory for India's economy, underscoring robust domestic consumption and buoyant import activity. The figures bode well for the country's fiscal health and economic recovery efforts, signalling resilience amidst global uncertainties. The Goods and Services Tax was introduced in the country with effect from July 1, 2017, and states were assured compensation for loss of any revenue arising on account of the implementation of GST as per the provisions of the GST (Compensation to States) Act, 2017 for five years. Hair oil, toothpaste, soap; detergents and washing powder; wheat; rice; curd, lassi, buttermilk; wristwatches; TV up to 32 inches; refrigerators; washing machines, mobile phones, are among key items on which GST rates have been slashed substantially, or for some kept at zero, benefiting people of this country. The GST Council, a federal body comprising the Union Finance Minister as its Chairman and Finance Ministers of all States as members, has played its part in the forum. The latest meeting of the GST Council was held on December 21 at Jaisalmer, Rajasthan.
Times of Oman
2 hours ago
- Times of Oman
ADB President announces $10 billion for India's urban infrastructure
New Delhi: Asian Development Bank (ADB) President Masato Kanda has committed up to $10 billion, including third-party capital, for India's urban transformation, including metro extensions, new regional rapid transit system (RRTS) corridors, and urban infrastructure and services. This is a five-year initiative, ADB said in a statement on Sunday. "Cities are engines of growth," ADB President Kanda said after meeting Prime Minister Narendra Modi here in the national capital. "ADB will mobilize capital, accelerate delivery, and scale solutions that keep India's urban economy moving and people thriving on the road to Viksit Bharat @ 2047," the ADB President added. The five-year plan includes sovereign loans, private sector financing, and third-party capital. "Had a wonderful meeting with Mr. Masato Kanda, in which we shared perspectives on a wide range of issues. India's rapid transformation over the last decade has empowered countless people and we are working to add further momentum in this journey!" PM Modi wrote in a post on X after meeting the ADB President. The initiative is anchored by India's flagship Urban Challenge Fund (UCF), which ADB is supporting to attract private investment for urban infrastructure. Completed analytical work on growth hubs, creative city redevelopment, and water and sanitation upgrades in 100 cities across India is laying the groundwork for the UCF. ADB is also committing USD 3 million in technical assistance to design bankable projects and strengthen the capacity of states and urban local bodies. India's towns and cities are projected to house more than 40 per cent of the population by 2030. ADB has already worked with more than 110 cities across 22 states on water supply, sanitation, housing, and solid-waste management projects, and the active urban portfolio totals 27 loans worth USD 5.15 billion. On urban transport, over the past decade, ADB has committed USD 4 billion for metro projects and RRTS covering 300 kilometers in eight cities, including the Delhi-Meerut RRTS, Mumbai Metro, Nagpur Metro, Chennai Metro, and Bengaluru Metro. During his India visit, Kanda also met Finance Minister Nirmala Sitharaman to discuss expanding metro networks including transit-oriented development (TOD), supporting rural prosperity, scaling rooftop-solar capacities, and operationalizing the UCF. In addition, he met Housing and Urban Affairs Minister Manohar Lal to map next steps for channelling private capital into urban projects, replicating ADB-backed urban transport successes on new corridors, and creating TOD opportunities. Kanda visited the ADB-supported Delhi-Meerut RRTS corridor, India's first RRTS, and spoke with women whose livelihoods have improved through project-linked training. In Gurugram, he visited the renewable-energy company ReNew to discuss stronger collaboration in renewable energy, followed by a roundtable with chief executives from infrastructure, finance, agriculture, and social sector firms. In that meeting, he emphasized that India's private sector can provide the scale and dynamism needed to drive India's growth. Under ADB's country partnership strategy for India, 2023-2027, it stands ready to provide more than USD 5 billion in financing each year, including about USD 1 billion in non-sovereign operations to catalyse additional private investment. ADB began operations in India in 1986. As of April 2025, it had committed USD 59.5 billion in sovereign lending and $9.1 billion in nonsovereign investments. The active sovereign portfolio comprises 81 loans totaling USD 16.5 billion as of April 2025. Founded in 1966, the multilateral development bank ADB is owned by 69 members--50 from the region.
