Page 21 - FIPI - Policy Economic Report - May 2025

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

7. India Records USD 81.04 Billion FDI Inflow in FY 2024–25

? The Government has put in place an investor-friendly Foreign Direct Investment (FDI) policy,
under which most sectors are open for 100% FDI through the automatic route. This policy is
reviewed on an ongoing basis to ensure that India remains an attractive and competitive
investment destination. As a result, FDI inflows have seen a steady rise—from USD 36.05 billion
in FY 2013–14 to USD 81.04 billion (provisional) in FY 2024–25, marking a 14% increase from
USD 71.28 billion in FY 2023–24.

? The services sector emerged as the top recipient of FDI equity in FY 2024–25, attracting 19% of
total inflows, followed by computer software and hardware (16%) and trading (8%). FDI into the
services sector rose by 40.77% to USD 9.35 billion from USD 6.64 billion in the previous year.

? India is also becoming a hub for manufacturing FDI, which grew by 18% in FY 2024–25, reaching
USD 19.04 billion compared to USD 16.12 billion in FY 2023–24.

? Maharashtra accounted for the highest share (39%) of total FDI equity inflows in FY 2024–25,
followed by Karnataka (13%) and Delhi (12%). Among source countries, Singapore led with 30%
share, followed by Mauritius (17%) and the United States (11%).

? According to Ministry of Commerce & Industry, over the last eleven financial years (2014–25),
India attracted FDI worth USD 748.78 billion, reflecting a 143% increase 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 FY 2013–14 to 112 in
FY 2024–25, underscoring India's growing global appeal as an investment destination.

? From 2019 to 2024, notable measures included allowing 100% FDI under the automatic route in
coal mining, contract manufacturing, and insurance intermediaries. In 2025, the Union Budget
proposed increasing the FDI limit from 74% to 100% for companies investing their entire
premium within India.

? These trends reaffirm India’s position as a preferred global investment hub, enabled by a
proactive policy framework, an evolving business ecosystem, and rising international confidence
in India’s economic resilience.

8. India becomes 4th largest economy: IMF data

India has surpassed Japan to become the world’s fourth largest economy according to IMF data.
According to the IMF, India’s GDP is currently $4.187 trillion, overtaking Japan’s $4.186 trillion. India
is now behind only three countries in terms of GDP size: USA ($30.51 trillion), China ($19.23 trillion)
and Germany ($4.74 trillion). UK is at the fifth position now with a GDP of $3.38 trillion.

May 2025 Page | 20