DPIIT: FDI register a growth of 14%, jumps to $81.04 billion in FY 25
Economy
4 min read
According to the Department for Promotion of Internal Trade and Investment (DPIIT), the total foreign direct investment (FDI) during 2024-25 was $81.04 billion (provisional), compared to $71.28 billion in 2023-24. This represents a 14% growth rate compared to the previous fiscal year.
DPIIT released the data after RBI released the FDI data for the fiscal year 2024-25.
According to the RBI, net FDI dropped sharply to $ 353 million during 2024-25 due to higher repatriation of profits by foreign investors.
Break-up of FDI
The FDI figures include equity investment, investment by foreign investors and other forms of capital inflows.
Following is the break-up of the FDI received in 2024-25.
- Equity investment -$51.04 billion
- Reinvestment- $23.5 billion
- Other forms of capital inflow -$6.5 billion
Service sector leads FDI Equity Investment
The maximum FDI equity investment in 2024-25 was in the Service sector, followed by Computer Hardware and Trading.
Service Sector
- Total investment in 2024-25 - $9.34 billion compared to $ 6.64 billion in 2023-24.
- Growth rate of 40.7 % as compared to the last fiscal year
- Share in total equity FDI- 19%
- The services sector includes banking, financial services, insurance, outsourcing, research and development, courier services, technology testing, and analysis.
Computer Hardware and Software
- Total investment - $ 7.81 billion, a decline of 2% compared to the last fiscal year.
- Share in equity FDI- 16%
Trading
- Investment - $ 4.17 billion, a growth of 8% compared to last year.
- Share in equity FDI - 8%
Top Five Sources of Equity FDI in 2024-25
Singapore remained the largest source of FDI, followed by Mauritius, the United States of America, the Netherlands, and the United Arab Emirates.
- Singapore - $14.94 billion, an increase of 26.9 % compared to the last fiscal year. Share in total equity FDI - 30%
- Mauritius - $ 8.34 billion, share of 17 %
- United States of America- $ 5.45 billion, share of 11%
- Netherlands- $ 4.62 billion.
- United Arab Emirates- $4.34 billion.
Top Five Equity FDI Recipient States
During 2024-25, the top state that attracted equity FDI was :
- Maharashtra- $19.6 billion, 39% share in total FDI equity inflows,
- Karnataka - $6.61 billion,13% share,
- Delhi - $6 billion,12% share.
- Gujarat - $ 5.7 billion,
- Tamil Nadu - $3.68 billion
Other Highlights of FDI Data
- From 2014-15 to 2024-25, the total FDI in the country was $ 748.78 billion.
- The source of FDI countries during this period increased from 89 in 2013-14 to 112 in 2024-25.
- The manufacturing sector attracted $19.04 billion in 2024-25, compared to $16.12 billion in 2023-24. This represents an 18% growth over 2023-24.
Also Read:
RBI: Net FDI declines by 96.5 % in 2024- 25 as Indian Market Matures
