FDI in India (FY14–FY26): Growth Trend, Data, and Key Insights 2025
India has emerged as a global investment hotspot, attracting billions of dollars in Foreign Direct Investment (FDI). FDI in India has risen from around USD 36 billion in 2014 to over USD 80 billion in 2025.
India’s total FDI inflow has reached USD 1 trillion over the past 25 years since 2000. more then 70% of this amount which is around $709 billion, was received in the last decade, reflecting India’s rapid growth and effective economic policies.
Table of Contents
What is FDI?
FDI (Foreign Direct Investment) refers to investment made by a company or individual from one country into business interests located in another country. It plays a vital role in job creation, technology transfer, and industrial growth, making it a key driver of India’s long-term development goals.
when a foreign company invests directly in India’s businesses, factories, infrastructure, or startups instead of just buying shares or trading stocks termed as FDI, like Apple setting up a manufacturing plant in India or Amazon investing Indian logistic.
FDI Inflow in India (FY14–FY26)
India has received $709 billion in Foreign Direct Investment since 2014.
| Financial Year | FDI Inflow (US$ billion) | % growth |
|---|---|---|
| FY14 | 36.05 | |
| FY15 | 45.15 | 25% |
| FY16 | 55.56 | 23% |
| FY17 | 60.22 | 8% |
| FY18 | 60.97 | 1% |
| FY19 | 62.11 | 2% |
| FY20 | 74.39 | 20% |
| FY21 | 84.84 | 14% |
| FY22 | 81.97 | -3% |
| FY23 | 71.36 | -13% |
| FY24 | 71.27 | 0% |
| FY25 | 80.61 | 13% |
| FY26* | 25.17 |
Source: DPIIT, Govt. of India
Chart: FDI Trend Over the Years
Key Insights
- FDI in India has increased from $36 billion in 2014 to $80 billion in 2025.
- India Attracted $84.84 billion FDI in FY21 making it highest ever.
- FDI in India has been on growing trajectory since 2014.
Top 5 investing Countries in FDI Equity
Singapore continues to be India’s largest FDI source, contributing over 30% of total inflows. Singapore is followed by Mauritius with 17% of total FDI inflow.
| Country | FDI inflow (USD) | % share |
|---|---|---|
| Singapore | 14.9 billion | 30% |
| MAURITIUS | 8.3 billion | 17% |
| U.S.A | 5.4 billion | 11% |
| NETHERLAND | 4.6 billion | 9% |
| UAE | 4.3 billion | 9% |
Source: DPIIT, Govt. of India
Top 5 States Receiving the Most FDI in India
FDI inflows in India are geographically concentrated, with a few states attracting the majority of investment due to infrastructure, industrial ecosystems, and business policies.
| State | FDI inflow (USD) | % share |
|---|---|---|
| MAHARASHTRA | 19.5 billion | 39% |
| KARNATAKA | 6.6 billion | 13% |
| DELHI | 6.0 billion | 12% |
| GUJARAT | 5.7 billion | 11% |
| TAMIL NADU | 3.6 billion | 7% |
Source: DPIIT, Govt. of India
- Maharashtra: Financial and manufacturing hub is top FDI destination in India
- Karnataka: Driven by IT, startups, and electric vehicle investments.
- Delhi NCR: Major hub for services, e-commerce, and telecom.
- Gujarat: Focus on renewable energy, semiconductor and industrial corridors.
- Tamil Nadu: it is a key player in automobile and electronics manufacturing.
Read also: India US Trade Statistics 2025: Sector-Wise Analysis & Growth Insights
Top Sectors Attracting FDI in India
India’s FDI inflows are dominated by high-growth sectors such as technology, manufacturing, services and Infrastructure.
| Sector | FDI inflow (USD) | % share |
|---|---|---|
| SERVICES SECTOR | 9.3 billion | 19% |
| COMPUTER SOFTWARE & HARDWARE | 7.8 billion | 16% |
| TRADING | 4.1 billion | 8% |
| NON-CONVENTIONAL ENERGY | 4.0 billion | 8% |
| CONSTRUCTION (INFRASTRUCTURE) ACTIVITIES | 2.2 billion | 4% |
Source: DPIIT, Govt. of India
Read also: India Exports in 2025: Key Products, Markets, and Trends
Government Policies Boosting FDI
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.
- India rank 40th on global Global Innovation Index 2023, it is a significant improvement from its 81st position in 2015.
- India rank 40th on World Competitive Index 2024.
- India was the third largest recipient of greenfield projects with 1,008 greenfield project announcements, as per the World Investment Report 2023
- India climbed from 142nd in 2014 to 63rd in the World Bank’s Doing Business Report (DBR) 2020.
Read also: India’s Merchandise Exports (1985-2025): Data & Growth Analysis
Conclusion
India’s FDI journey reflects its transformation into a global investment hub. the long-term trajectory remains upward, with policy reforms and innovation driving sustainable growth in manufacturing and service sector.
Sources
- https://www.pib.gov.in/PressReleasePage.aspx?PRID=2131716
- https://www.pib.gov.in/PressReleasePage.aspx?PRID=2083683
- https://www.dpiit.gov.in/publications/fdi-statistics
