India attracted $748.78 billion in foreign direct investment (FDI) between financial years 2014–15 and 2024–25, reflecting the expansion of the country’s investment ecosystem and growing participation from international investors. The inflows represented an increase of 143% compared with the preceding eleven-year period, when India received $308.38 billion.
According to data released by the Ministry of Commerce and Industry, the number of countries investing in India increased from 89 in FY 2013–14 to 112 in FY 2024–25, demonstrating a broader geographical distribution of foreign investment.
The figures, highlighted in a News On AIR special report on 19 October 2026, reflect the impact of investment policy reforms, infrastructure development, industrial expansion and efforts to improve India’s business environment.
Foreign Investment Rises 143% Over Previous Eleven-Year Period
India’s cumulative FDI inflows increased substantially during the eleven financial years ending March 2025.
Between FY 2003–04 and FY 2013–14, the country received $308.38 billion in foreign investment. This increased to $748.78 billion during FY 2014–15 to FY 2024–25, representing a rise of approximately 143%.
The latest eleven-year period accounted for nearly 70% of the $1,072.36 billion in total FDI received by India over the preceding 25 years.
Annual investment inflows also increased significantly. India received $36.05 billion in FY 2013–14, compared with $81.04 billion in FY 2024–25.
The FY 2024–25 figure represented an increase of 14% over the $71.28 billion received in FY 2023–24.
These figures cover total FDI inflows, including equity capital, reinvested earnings and other capital. They are distinct from net FDI, which also accounts for investment outflows and repatriation.
Investment Sources Expand from 89 to 112 Countries
An important development has been the expansion of India’s international investor base.
The number of countries contributing foreign direct investment increased from 89 in FY 2013–14 to 112 in FY 2024–25.
This broader geographical participation reflects India’s increasing integration with international investment networks and the diversification of its economic partnerships.
Singapore emerged as the leading source of FDI equity inflows during FY 2024–25, accounting for approximately 30% of the total. Mauritius followed with 17%, while the United States contributed 11%.
International investors have expanded their participation across sectors such as information technology, financial services, manufacturing, telecommunications, infrastructure and renewable energy.
A wider investor base also creates opportunities for Indian companies to develop international partnerships, access advanced technologies and participate in global production networks.
Manufacturing FDI Increases 18% to $19.04 Billion
India’s manufacturing sector recorded a notable increase in foreign direct investment during FY 2024–25.
FDI inflows into manufacturing rose from $16.12 billion in FY 2023–24 to $19.04 billion in FY 2024–25, representing growth of approximately 18%.
The increase reflects expanding international investment in India’s industrial and manufacturing ecosystem.
Government initiatives such as Make in India, Production Linked Incentive schemes and industrial infrastructure development have sought to encourage domestic manufacturing and attract investment into strategic sectors.
Foreign investments in manufacturing can contribute to capacity expansion, employment generation, technology transfer and stronger domestic supply chains.
The development is particularly relevant to India’s efforts to increase its participation in global manufacturing and reduce dependence on imported industrial products.
Services and Technology Sectors Lead FDI Equity Inflows
The services sector emerged as the largest recipient of FDI equity inflows during FY 2024–25, accounting for approximately 19% of the total.
Computer software and hardware followed with a 16% share, while trading accounted for 8%.
FDI equity inflows into the services sector increased by 40.77%, rising from $6.64 billion in FY 2023–24 to $9.35 billion in FY 2024–25.
The figures highlight the importance of technology, digital services, financial activities and commercial infrastructure in attracting international capital.
India’s expanding digital economy, skilled workforce and growing domestic market continue to provide opportunities for investment in software development, electronics, telecommunications and technology-enabled services.
These investments also support the development of supporting industries, professional services and technology infrastructure.
FDI Reforms Open Defence, Insurance, Space and Telecommunications
India has progressively liberalised foreign investment policies across several sectors to encourage international participation while maintaining regulatory oversight.
Between 2014 and 2019, major reforms included increasing foreign investment limits in defence, insurance and pension-related activities. The government also liberalised investment provisions covering construction, civil aviation and single-brand retail trading.
Further reforms between 2019 and 2024 permitted 100% foreign investment through the automatic route in areas such as coal mining, contract manufacturing and insurance intermediaries.
The government has also introduced changes to foreign investment provisions in the space sector, creating opportunities for private participation in satellite manufacturing, launch-related activities and associated infrastructure.
Liberalisation of the defence sector has been particularly relevant to India’s efforts to strengthen domestic manufacturing, encourage technology partnerships and expand indigenous defence production.
These reforms form part of a broader policy framework intended to attract international capital while supporting domestic industrial development.
Maharashtra, Karnataka and Delhi Lead FDI Inflows
Foreign direct investment continued to flow into India’s major industrial, commercial and technology centres during FY 2024–25.
Maharashtra received the largest share of FDI equity inflows, accounting for approximately 39% of the national total.
Karnataka followed with 13%, while Delhi accounted for 12%.
Maharashtra’s position reflects its substantial industrial base, financial services ecosystem and established commercial infrastructure. Karnataka remains an important destination for technology investments, software development, electronics and research-driven industries.
Delhi’s share reflects its importance as a commercial centre and its connections with the surrounding National Capital Region.
The geographical distribution of investment also highlights opportunities for other states to attract greater international capital through industrial infrastructure, logistics improvements and sector-specific investment promotion.
Foreign Investment Supports Make in India and Industrial Expansion
The expansion of FDI has become an important component of India’s industrial development strategy.
Foreign investment can provide access to long-term capital, advanced manufacturing technologies, global distribution networks and international industrial partnerships.
India’s Make in India initiative seeks to use these advantages to strengthen domestic production capabilities and increase the country’s participation in global value chains.
Investments in electronics, automobiles, renewable energy, telecommunications and advanced manufacturing can support the development of domestic supplier networks and specialised industrial capabilities.
The government’s emphasis on infrastructure development, manufacturing incentives and improved logistics also seeks to make Indian production facilities more competitive internationally.
Foreign investment complements domestic capital formation by supporting industrial expansion and creating opportunities for Indian enterprises to collaborate with international manufacturers and technology companies.
FDI Momentum Continues Beyond March 2025
India’s foreign investment performance continued to attract attention during FY 2025–26.
The Economic Survey 2025–26 reported that gross FDI inflows reached $64.7 billion during April–November 2025, compared with $55.8 billion during the corresponding period of the previous financial year.
The figures indicate continued international investment activity beyond the eleven-year period covered by the $748.78 billion cumulative total.
India’s growing digital economy, manufacturing ambitions and expanding infrastructure requirements continue to create opportunities for international investors.
The government has also identified increasing annual foreign investment inflows to $100 billion as an objective, supported by ongoing reforms and investment promotion measures.
India Strengthens Its Position in Global Investment Networks
The $748.78 billion received between FY 2014–15 and FY 2024–25 represents a significant expansion in India’s foreign investment activity.
The 143% increase over the preceding eleven-year period, accompanied by the expansion of investing countries from 89 to 112, demonstrates the growing geographical reach of India’s investment relationships.
Rising manufacturing investment, strong technology-sector participation and continued policy reforms have broadened the opportunities available to international investors.
As India develops its manufacturing capabilities, digital infrastructure, renewable energy systems and advanced technology industries, foreign direct investment will remain an important source of capital, industrial collaboration and international economic integration.
India’s expanding investment ecosystem provides a strong foundation for strengthening domestic manufacturing, accelerating technological development and building deeper economic partnerships with countries across the world.
References
- Press Information Bureau, Ministry of Commerce and Industry, Government of India — India Records USD 81.04 Billion FDI Inflow in FY 2024–25, 27 May 2025.
https://www.pib.gov.in/Pressreleaseshare.aspx?PRID=2131716 - Press Information Bureau, Government of India — Foreign Direct Investment: Strengthening India’s Economic Growth and Global Integration, August 2025.
https://static.pib.gov.in/WriteReadData/specificdocs/documents/2025/aug/doc2025818614701.pdf - Department for Promotion of Industry and Internal Trade (DPIIT) — Quarterly FDI Newsletter and Foreign Direct Investment Statistics.
https://www.dpiit.gov.in/ - Ministry of Finance, Government of India — Economic Survey 2025–26, Chapter 4: External Sector, January 2026.
https://www.indiabudget.gov.in/economicsurvey/doc/eschapter/echap04.pdf - New India Samachar, Government of India — India’s FDI Growth and Investment Reforms, July 2025.
https://newindiasamachar.pib.gov.in/WriteReadData/flipbook/2025/Jul/1st/English/files/basic-html/page26.html
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