FDI Inflows into India Surge 45% in H1 FY 2024-25
New Delhi: India has witnessed a significant surge in Foreign Direct Investment (FDI) inflows, with a remarkable 45% increase during the first half of the current financial year. FDI inflows rose to $29.79 billion in the April-September period, compared to $20.5 billion in the same period during FY 2023-24, according to data from the Department for Promotion of Industry and Internal Trade (DPIIT).
Key sectors benefiting from this increase in FDI include services, automobile, computer software, IT hardware, telecommunications, pharmaceuticals, and chemicals. These sectors have attracted substantial investments, which are expected to foster higher job creation, enhanced technology, and overall economic growth.
In particular, FDI in services saw a notable increase, reaching $5.69 billion in the first half of FY 2024-25, up from $3.85 billion in the same period last year. Additionally, the renewable energy sector attracted $2 billion in FDI, signaling growing international confidence in India’s non-conventional energy market.
The FDI inflows in the July-September quarter of FY 2024-25 also saw a substantial rise, jumping 43% to $13.6 billion, compared to $9.52 billion in the same quarter of the previous fiscal year. The preceding April-June quarter saw an even more impressive increase of 47.8%, with FDI inflows reaching $16.17 billion.
Overall, the total FDI inflows for the first half of FY 2024-25, which include equity investments, reinvested earnings, and other capital, amounted to $42.1 billion, reflecting a 28% growth from $33.12 billion during the same period in FY 2023-24.
Regionally, Maharashtra emerged as the top recipient of FDI, attracting $13.55 billion in April-September 2024-25, followed by Karnataka ($3.54 billion), Gujarat ($4 billion), and Telangana ($1.54 billion).
The data also highlights the countries that contributed to these FDI inflows. Mauritius remains the largest source, accounting for $7.53 billion, up from $5.22 billion last year. Other significant contributors include the United States ($2.57 billion), the Netherlands ($3.58 billion), the UAE ($3.47 billion), the Cayman Islands ($235 million), and Cyprus ($808 million), which also saw substantial increases in their investments into India.
These figures underscore India’s growing appeal as a global investment destination, driven by its robust economic performance, strategic initiatives, and expanding market potential across various sectors.
