India received foreign direct investment (FDI) inflows worth USD 81.04 billion (provisional) in the financial year 2024–25, reflecting a 14% increase from USD 71.28 billion in the previous year, the Ministry of Commerce & Industry said on Tuesday. The ministry attributed the growth to an “investor-friendly” FDI policy that continues to be reviewed to ensure competitiveness and attractiveness.

According to the statement, the services sector emerged as the top recipient of FDI equity in FY 2024–25, accounting for 19% of total inflows. The sector received USD 9.35 billion, a 40.77% rise from USD 6.64 billion in FY 2023–24. It was followed by the computer software and hardware sector at 16%, and trading at 8%.

India’s manufacturing FDI also showed strong momentum, rising 18% to USD 19.04 billion in FY 2024–25, compared to USD 16.12 billion in the prior year.

Among Indian states, Maharashtra attracted the highest share of FDI equity inflows at 39%, followed by Karnataka (13%) and Delhi (12%). On the source country front, Singapore contributed 30% of total FDI inflows, followed by Mauritius at 17% and the United States at 11%.

Cumulatively, India attracted USD 748.78 billion in FDI over the past eleven financial years (2014–25), marking a 143% increase over the USD 308.38 billion received during the previous eleven years (2003–14). This accounts for nearly 70% of the USD 1,072.36 billion FDI received by India in the past 25 years.

The number of FDI source countries also rose from 89 in FY 2013–14 to 112 in FY 2024–25, highlighting India’s rising global appeal as an investment destination.

In terms of regulatory reform, India liberalized FDI norms across key sectors in recent years. Between 2014 and 2019, FDI caps were increased in defence, insurance, and pensions, while civil aviation, construction, and single-brand retail were opened up. Between 2019 and 2024, 100% FDI under the automatic route was allowed in coal mining, contract manufacturing, and insurance intermediaries.

In 2025, the Union Budget proposed raising the FDI limit from 74% to 100% for insurance firms that invest all their premiums domestically. 

“These trends reaffirm India’s position as a preferred global investment hub,” the ministry said, citing continued policy reforms, an evolving business ecosystem, and growing global investor confidence.