India Crosses the $1 Trillion Mark: Foreign Direct Investment Hits Record High
New Delhi, 20 Feb - India has achieved an unprecedented milestone in its economic journey, with foreign direct investment (FDI) inflows exceeding $1 trillion since April 2000, according to data released by the Department for Promotion of Industry and Internal Trade (DPIIT).
The cumulative figure includes equity investments, reinvested earnings, and other capital inflows, which have shown a significant upswing in the first half of FY 2024-25, reaching $42.1 billion - a 26% rise from the same period last year.
In terms of top contributors, Mauritius emerged as the leading source of FDI, accounting for 25% of total inflows, followed closely by Singapore at 24%. Other significant contributors include the United States (10%), Netherlands (7%), Japan (6%), and the United Kingdom (5%).
The services sector led the way in terms of inflows, with sub-sectors like financial services, IT, and consultancy being major beneficiaries. Manufacturing also saw a significant increase of 69% over the last decade, driven by India's "Make in India" initiative.
According to the Ministry of Commerce and Industry, FDI has played a transformative role in India's development by providing substantial non-debt financial resources, fostering technology transfers, and creating employment opportunities.
The government noted that recent policy changes have eased the investment climate, with the abolition of the angel tax on startup funding in 2024 and reduced corporate tax rates for foreign companies. These reforms complement India's competitive labor costs and strategic position as the world's fifth-largest economy.
To put the milestone into perspective, earning $1 per second would take 31,709 years to reach $1 trillion - a testament to the significant growth and influence India has achieved in its economic journey.
As India aligns with global economic trends, the government expects further growth in FDI. With investments spread across 60 sectors and 31 states and union territories, the country is well-positioned to continue strengthening its role on the global stage, fostering sustainable growth and development.