India's FDI Success Story: Record $81 Billion Inflows Drive Economic Transformation

India has emerged as one of the world's most attractive investment destinations, achieving remarkable Foreign Direct Investment (FDI) inflows of USD 81.04 billion in FY 2024-25, representing a significant 14% year-on-year growth. This milestone reflects the success of India's investor-friendly policies and the nation's commitment to the Viksit Bharat vision.

Sectoral Distribution: Services and Manufacturing Lead the Way

The services sector continues to dominate India's FDI landscape, attracting USD 9.35 billion (19% of total inflows) in FY 2024-25. This is closely followed by the manufacturing sector, which received USD 19.04 billion, accounting for 18% of total investments. These sectors are crucial pillars of India's economic transformation under the Viksit Bharat initiative.

Top Source Countries: Singapore, Mauritius, and USA Lead Investments

Singapore remains India's largest FDI source, contributing 30% of total inflows, followed by Mauritius at 17% and the United States at 11%. This diversified investor base demonstrates global confidence in India's economic potential and policy framework.

Policy Framework: 100% FDI and PLI Schemes Drive Growth

India's progressive policy framework, including 100% FDI through the automatic route in most sectors, has been instrumental in attracting investments. The Production Linked Incentive (PLI) schemes have successfully attracted over USD 20.3 billion in investments, while corporate tax reductions from 40% to 35% have enhanced India's competitiveness as an investment destination.