FDI: Despite the ongoing uncertainties and challenges around the world, the flow of Foreign Direct Investment (FDI) in India was excellent this year. Since January this year, the average monthly FDI has been more than $4.5 billion. This trend is expected to continue in 2025 due to the efforts of the NDA government led by Prime Minister Narendra Modi to create a better environment for investors in the country. Better policies for investors, strong ‘returns’ on investment, strong workforce, low compliance burden, removal of crimes related to small scale industries, National Single Window System for approvals and PLI schemes to attract foreign investors to invest in India. Are among the main measures.
FDI flow increased by 42 percent in the first 9 months
Furthermore, to ensure that India remains an attractive and investor friendly destination, the Government reviews the FDI policy on a frequent basis. The government makes changes in it from time to time after deep consultation with various stakeholders including top industry associations and industry representatives. During the January-September period this year, FDI flow in the country increased by about 42 percent to $42.13 billion. In the same period a year ago, FDI flow was $29.73 billion. FDI inflow increased by 45 per cent to USD 29.79 billion in April-September 2024-25, compared to USD 20.48 billion in the same period of the last financial year. Total FDI in 2023-24 to be USD 71.28 billion
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The trend will continue in 2025 also
Amardeep Singh Bhatia, secretary in the Department for Promotion of Industry and Internal Trade (DPIIT), said, “Looking at the trend, the country will continue to attract good FDI in 2025 also. He said India is continuing to open its economy to global investors by increasing foreign investment limits, removing regulatory issues, providing better infrastructure and improving the business environment. India recorded a total FDI inflow of US$ 991 billion during the last 10 years (2014-2024), of which 67 percent (US$ 667 billion) was received.
India is the favorite investment destination for global companies
FDI equity flows into the manufacturing sector registered a 69 percent growth, from US$98 billion in 2004-2014 to US$165 billion in 2014-2024. Sharing similar views, experts said that despite all the global challenges, India is still a preferred investment destination for global companies.
With PTI inputs
