FDI inflows set to grow further, says DPIIT secretary at CII summit

DPIIT Secretary Amardeep Singh Bhatia says FDI will grow as investor interest remains high, driven by policy support, trade pacts and India's growth momentum

Foreign direct investment (FDI) inflows are expected to grow further, building on the elevated levels seen over the past four to five years, said Department for Promotion of Industry and Internal Trade (DPIIT) Secretary Amardeep Singh Bhatia on Thursday.

 

“We expect this inflow to grow further. And if you see the last four, five years, this normal, if you can call it a normal of FDI which used to be added over, has stepped up to a much higher level. And the interest of foreign investors is on account of the positive story, which is seen by them when looking from the outside into the country,” Bhatia said at the Annual Business Summit 2025 hosted by the Confederation of Indian Industry (CII).

 

Bhatia said that while there may be some debate around the FDI figures, India received around $81 billion in FDI during the last financial year — the third-highest ever, with the peak being $84 billion. “We expect this inflow to grow further,” he said.

 

Bhatia further said: “We should look at investments with a long-term horizon—returns over eight to 10 years or even more. A larger, longer investment outlook can yield maximum returns. And I see no reason why domestic investment should lag, especially when we have very supportive policies in place.”

 

He reiterated the government’s commitment to enabling business growth: “We have very supportive policies, from building industrial corridors to sector-specific schemes, especially in electronics and components.” 

 

Bhatia stressed the role of start-ups and innovation. “We are building a vibrant start-up ecosystem through incubators and industry–academia linkages. Start-ups must be integrated into industry to drive new products, new processes, and scale.”

 

If domestic investment is strong, it acts as a multiplier — three to four times more attractive for foreign capital, Bhatia said. “With government and industry working together, and a young, skilled population, India is well positioned to sustain high growth in the years ahead,” he added.

 

Bhatia highlighted how India is emerging as a reliable and attractive destination for investment, even amid global uncertainty.

 

“Today’s uncertainty is more external than internal,” he noted, pointing to the post-Covid realignment of global trade relations and supply chains. “Companies are increasingly seeking to diversify manufacturing bases to build resilient value chains. This has created opportunities for India.”

 

He emphasised the momentum behind India’s bilateral trade engagements, including agreements with the UAE, Australia, and the UK. “These pacts are opening up new markets and expanding our global footprint,” he said.

 

Bhatia also highlighted India’s economic stability, with projected GDP growth of 6.5 per cent annually over the next few years. “This is not just about resilience — it’s about sustained performance. Our clear goal is to become a Viksit Bharat by 2047, and we’ve laid out a stable policy roadmap to achieve that," he said.

 

Tim Thomas, CEO, Australia India Centre, said on the occasion that in order to unlock trade partnerships between India and Australia this year, the Australian Prime Minister launched a new road map for economic engagement with India. “It identifies four super-highways of growth: clean energy, education and skills, agribusiness, and tourism,” Thomas said.