Page 20 - Policy Economic Report - December 2024
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POLICY AND ECONOMIC REPORT
                   OIL & GAS MARKET

               in India," liberalized sectoral policies, and the Goods and Services Tax (GST) have enhanced investor
               confidence, while competitive labor costs and strategic incentives continue to attract multinational
               corporations.

               Figure 16: Growth in India’s FDI inflows

               Source- Department for Promotion of Industry & Internal trade (DPIT)

               Over the last decade (April 2014 to September 2024), total FDI inflows amounted to $709.84 billion,
               accounting for 68.69% of the overall FDI inflow in the past 24 years. This robust inflow of investments
               underscores India's pivotal role in shaping the global economic landscape.

               India’s remarkable achievement in attracting foreign direct investment (FDI) can be attributed to a range
               of contributing factors:

                   • Competitiveness and Innovation: India’s ranking in the World Competitive Index 2024 jumped
                        three positions to 40th, from 43rd in 2021. Additionally, India was named as the 48th most
                        innovative country among the top 50 nations, securing the 40th position out of 132 economies in
                        the Global Innovation Index 2023, a significant improvement from its 81st position in 2015. These
                        rankings highlight the country’s progress in enhancing its innovation ecosystem and competitive
                        edge.

                   • Global Investment Standing: India was the third largest recipient of greenfield projects with 1,008
                        greenfield project announcements, as per the World Investment Report 2023. The number of
                        international project finance deals in India also increased by 64%, making it the recipient of the
                        second largest number of international project finance deals.

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