FDI In India

FDI inflows into India are expected to register robust growth in 2026, supported by strong macroeconomic fundamentals, big-ticket investment announcements, sustained efforts to improve the ease of doing business, and a new generation of investment-linked trade pacts. To ensure that India remains an attractive and investor-friendly destination, the government reviews the FDI (Foreign Direct Investment) policy on an ongoing basis and makes changes from time to time after holding extensive consultations with stakeholders. The Department for Promotion of Industry and Internal Trade (DPIIT) has this year held a series of meetings with stakeholders on ways to promote FDI. In November, Commerce and Industry Minister Piyush Goyal also held consultations on ways to attract greater investments by making processes faster, smoother, and more efficient. Investor-friendly policies and regulatory practices, strong return on investments, a talented workforce, easing compliance burdens, ...

Today's Best of BS Opinion looks at insurance FDI liberalisation, the railways' subsidy model, regulatory bottlenecks hurting investment, shifting FDI flows, and new ideas shaping US politics.

India's outward FDI commitments rose marginally to $3.51 billion in July 2025 but declined sharply compared to June 2025, according to RBI data.

There is no declining trend in Foreign Direct Investments (FDI) into India, though periodic fluctuations may occur sometimes due to global interest rate changes, Commerce and Industry Minister Piyush Goyal has said. He added India is seeing renewed overseas inflows and the government is open to suggestions and will adopt new measures to promote FDI in the country. Over the last eleven financial years (2014-25), India attracted FDI worth USD 748.78 billion, an increase of 143 per cent over the previous eleven years (2003-14), which saw USD 308.38 billion in inflows. Additionally, the number of source countries for FDI increased from 89 in 2013-14 to 112 in 2024-25, underscoring India's growing global appeal as an investment destination. Given these figures, "I don't think that there is any declining trend, periodically there may be some changes, and that happens more due to changes in interest rate cycles in other countries, so if the bond yields in some countries become exorbitantl

Maharashtra and Karnataka accounted for 51 per cent of the foreign direct investment (FDI) inflows into the country during the last financial year 2024-25, according to the latest data of the Department for Promotion of Industry and Internal Trade (DPIIT). Maharashtra attracted maximum foreign inflows at USD 19.6 billion and accounted for 31 per cent of the country's total FDI during April-March 2024-25. Karnataka received USD 6.62 overseas investments during the last fiscal year, the data showed. The two states were followed by Delhi (USD 6 billion), Gujarat (USD 5.71 billion), Tamil Nadu (USD 3.68 billion), Haryana (USD 3.14 billion), and Telangana (USD 3 billion). According to experts, the main reason for the maximum inflows in Maharashtra and Karnataka is substantial improvement in infrastructure. Infrastructure has improved considerably and that is making them attractive destinations for FDI in India, an economist said. Total FDI, which includes equity inflows, reinvested ..

India continues to remain an attractive investment destination and rise in repatriation of funds is a sign of a mature market where foreign investors can enter and exit smoothly, Reserve Bank Governor Sanjay Malhotra said on Friday. Gross foreign direct investment (FDI) inflows remained strong, rising by around 14 per cent to USD 81 billion in 2024-25, from USD 71.3 billion a year ago. However, net FDI inflows moderated to USD 0.4 billion in 2024-25, from USD 10.1 billion a year ago. In 2024-25, foreign portfolio investment (FPI) to India dropped sharply to USD 1.7 billion, as foreign portfolio investors booked profits in equities. The moderation in net FDI "is on account of a rise in repatriation and net outward FDI, while gross FDI actually increased by 14 per cent," Malhotra said, while unveiling the June monetary policy. Rise in repatriation is a sign of a mature market, where foreign investors can enter and exit smoothly, he said, adding "high gross FDI indicates that India ..

Net FDI fell sharply due to higher repatriation and outward investments even as gross inflows rose 13.7% to $81 bn with 60% of flows going to four key sectors

The discussions are close to being finalised, the sources, both government officials said. They declined to be identified as the discussion was not public

Chief minister said that since the launch of the new industrial policy the state had attracted Rs 1 trillion investments from the Investor Connect meet organized in Raipur, Delhi and Mumbai

Gross inward FDI during April-November 2024 increased to $55.6 billion from $47.2 billion a year ago, according to the Reserve Bank of India's data (January 2025 bulletin)

India, averaging over USD 4.5 billion in monthly foreign direct investment (FDI) inflows since January this year despite global uncertainties and challenges, is tipped to sustain the trend in 2025 on the back of measures by the Prime Minister Narendra Modi-government to enhance the country's investor-friendly appeal. Investor-friendly policies, strong return on investments, skilled manpower, reduced compliance burdens, decriminalising minor industry-related offences, national single window system for streamlined approvals and clearances, and production linked incentive (PLI) schemes are key measures for keeping foreign investors focused on India. Further to ensure that India remains an attractive and investor-friendly destination, the government reviews FDI policy on an ongoing basis and makes changes from time to time after having intensive consultations with stakeholders including apex industry chambers, associations, and representatives of industries. In the January-September ...

The pace of FDI utilisation has been slow. Among private-sector non-life insurers, no company has reached the current 74 per cent threshold

With rising global investments in artificial intelligence start-ups, India is well-positioned to leverage its rapidly growing AI ecosystem to attract further investments and stimulate innovation

Singapore emerges as top destination for Indian FDI in Q2

Foreign direct investment inflows in the manufacturing sector during 2014-24 rose by 69 per cent to USD 165.1 billion, Parliament was informed on Friday. In a written reply to the Rajya Sabha, Minister of State for Commerce and Industry Jitin Prasada said that India is rapidly emerging as a preferred country for foreign investment in the manufacturing sector " FDI equity inflow in the manufacturing sectors in the last ten financial years (2014-24) has increased by 69 per cent to USD 165.1 billion as compared to USD 97.7 billion in the previous ten financial years (2004-14)," he said. He also said that the total FDI inflow of USD 383.50 billion has been reported in the country during the past five financial years (2019-20 to 2023-24). Replying to a separate question, he said that the initiatives taken by the Government have led to a decline in dependency on imports in several sectors including mobiles. The import of mobile phones has decreased from Rs 48,609 crore in 2014-15 to Rs

Says industry should prepare itself for a low tariff regime in the long run

New structure will help meet FDI ceiling of 74% for insurance sector

In the same period last year (April 2022-February 2023), FDI inflows were at $39.61 billion, while outflows touched $12.90 billion

FDI into India is expected to receive a boost from the Trade and Economic Partnership Agreement (TEPA) signed with the European Free Trade Association (EFTA) on 10 March 2024

India's nascent private space industry on Thursday welcomed the easing of FDI policy for the sector, terming it as a "pivotal move" to boost investments and help the country increase its share in the global space economy. "The easing of FDI norms will have a similar impact on the space sector as the 1991 liberalisation policy had on the overall economy," Tushar Jadhav, co-founder and Chief Executive Officer Manastu Space told PTI. Industry leaders said the government decision to permit 100 per cent overseas investment in making components for satellites and up to 49 per cent FDI through the automatic route for launch vehicles and associated systems or subsystems, creation of spaceports for launching and receiving spacecraft has given the much needed clarity for the sector. Several industry leaders cited examples of how foreign investors were hesitant to invest in the space sector through the government route, which was the case earlier, due to a series of approvals that were require