FDI inflows up at 13% to $50 bn in FY25; dip 24.5% in Jan-Mar quarter

During the October-December quarter of 2024-25 also, the inflows were contracted by 5.6 per cent year-on-year to USD 10.9 billion due to global economic uncertainties

Foreign direct investment (FDI) in India fell 24.5 per cent year-on-year (Y-o-Y) to $9.34 billion in the January-March quarter of 2024-25 but grew 13 per cent at $50 billion during the entire FY25, according to the government data released on Tuesday. FDI inflows during Q4FY24 stood at $12.38 billion. These were $44.42 billion in FY24. 

During the October-December quarter of 2024-25 also, the inflows were contracted by 5.6 per cent Y-o-Y to $10.9 billion due to global economic uncertainties. 

Total FDI, which includes equity inflows, reinvested earnings and other capital, grew by 14 per cent to $81.04 billion during the last financial year. It is the highest in the last three years. The same stood at $71.3 billion in 2023-24.

  During 2024-25, Singapore emerged as the largest source of FDI with $14.94 billion inflows. It was followed by Mauritius ($8.34 billion), the US ($5.45 billion), the Netherlands ($4.62 billion), the UAE ($3.12 billion), Japan ($2.47 billion), Cyprus ($1.2 billion), UK ($795 million), Germany ($469 million), and Cayman Islands ($371 million). 

However, the data showed that when compared to 2023-24, the inflows had declined from the Netherlands, Japan, the UK, and Germany. 

Singapore accounts for 30 per cent share, Mauritius (17 per cent) and the US (11 per cent). 

Sectorally, inflows rose in services, trading, telecommunication, automobile, construction development, non-conventional energy and chemicals. However, it has contracted in computer software and hardware, construction (infrastructure activities), and pharmaceuticals. 

FDI in services has increased to $9.34 billion during 2024-25 as against $6.64 billion in 2023-24. According to the data, FDI inflows in non-conventional energy stood at $4 billion as against $3.76 billion in 2023-24. The data also showed that Maharashtra received the highest inflow of $19.6 billion during the last financial year. It was followed by Karnataka ($6.61 billion), Delhi ($6 billion), Gujarat (about $5.7 billion), Tamil Nadu ($3.68 billion), Haryana ($3.14 billion), and Telangana ($2.99 billion).