Page 19 - Policy Economic Report - December 2025

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

8. Despite global FDI slowdown, India's gross inflows remain healthy in FY26: CareEdge Ratings

Even as global foreign direct investment (FDI) has been losing momentum over the years, India's gross FDI
inflows have remained resilient, supported by steady investment interest, according to a report by
CareEdge Ratings.

The report highlighted that gross FDI inflows into India have stayed at healthy levels over the past decade.
Gross inflows stood at USD 55.6 billion in FY16 and gradually rose to USD 60.2 billion in FY17, USD 61
billion in FY18 and USD 62 billion in FY19. Inflows strengthened further to USD 74.4 billion in FY20, USD
82 billion in FY21 and peaked at USD 84.8 billion in FY22.

While inflows moderated thereafter but they remained robust at USD 71.4 billion in FY23, USD 71.3 billion
in FY24 and USD 80.6 billion in FY25. For FY26 year-to-date, gross FDI inflows are recorded at USD 50.4
billion as of September 2025.

In contrast, global FDI has been steadily losing steam. CareEdge Ratings highlighted that global net FDI
inflows as a percentage of GDP have declined since the Global Financial Crisis, with successive shocks such
as the Euro Area debt crisis, the Covid-19 pandemic and the Russia-Ukraine war adding further pressure.

It stated 'Global FDI net inflows as a percentage of GDP have declined since the Global Financial Crisis,
with subsequent shocks adding further pressure'. The report pointed out that India has seen strong
growth in greenfield investments across sectors such as semiconductors, electronics, electrical
equipment, EV components, and basic metals.

At the same time, outward FDI from India averaged USD 22 billion during FY24-FY25, marking a 58 per
cent increase over the average of USD 14 billion seen during FY21-FY23. Indian firms expanded their global
footprint, particularly in Europe, South America, and Africa, investing in sectors including telecom,
automotive, energy, defence, pharma, ports, and steel.

The report also pointed out that the five-year moving average of global FDI inflows shows a clear
downward trend over the past decade.

9. India's petrol pump network surpasses 100,000; third-largest after US and China

India’s petrol pump network has crossed the 100,000 mark, nearly doubling over the past decade as state-
run oil companies rolled out outlets aggressively to serve a vehicle boom and push fuel access deeper into
rural areas.

India now has the world’s third-largest fuel retail network, behind the US and China, which each operate
110,000-120,000 pumps across far larger geographies. The expansion has largely resolved access
constraints in rural and remote regions and improved customer service by intensifying competition. Rural
outlets now account for 29 per cent of total pumps, up from 22 per cent a decade ago. The character of
fuel stations too has changed: once limited to petrol and diesel, around one-third of outlets now offer
alternative fuels, including CNG and EV charging.

November 2025 Page | 18