India records $81.04 billion FDI inflow in FY 2024–25, services sector leads with 40% growth

India records $81.04 billion FDI inflow in FY 2024–25, services sector leads with 40% growth

India attracted a record USD 81.04 billion in foreign direct investment (FDI) in the fiscal year 2024–25, up 14% from the previous year, driven by a liberalized policy regime and strong inflows into the services and manufacturing sectors, the Ministry of Commerce & Industry said on Tuesday.

The services sector emerged as the top recipient of FDI equity in FY 2024–25, attracting 19% of total inflows, followed by computer software and hardware (16%) and trading (8%). FDI into the services sector rose by 40.77%, reaching USD 9.35 billion, up from USD 6.64 billion in the previous year.

India is also becoming a hub for manufacturing FDI, which grew by 18% in FY 2024–25, reaching USD 19.04 billion compared to USD 16.12 billion in FY 2023–24.

Maharashtra accounted for the highest share (39%) of total FDI equity inflows in FY 2024–25, followed by Karnataka (13%) and Delhi (12%). Among source countries, Singapore led with a 30% share, followed by Mauritius (17%) and the United States (11%).

Over the last eleven financial years (2014–25), India attracted FDI worth USD 748.78 billion, reflecting a 143% increase over the previous eleven years (2003–14), which saw USD 308.38 billion in inflows. This constitutes nearly 70% 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 FY 2013–14 to 112 in FY 2024–25, underscoring India’s growing global appeal as an investment destination.

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 the Defence, Insurance, and Pension sectors, as well as liberalized policies for Construction, Civil Aviation, and Single Brand Retail Trading.

From 2019 to 2024, notable measures included allowing 100% 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% to 100% for companies investing their entire premium within India.