First Time Ever- India Crosses $1 Trillion in FDI Inflows: Mauritius Leads the Way

December 13, 2024: India has reached a monumental milestone, with Foreign Direct Investment (FDI) surpassing the $1 trillion mark since the turn of the century. According to the latest data released by the Department for Promotion of Industry and Internal Trade (DPIIT), the cumulative FDI, including equity, reinvested earnings, and other capital, stood at a staggering $1,033.40 billion between April 2000 and September 2024.

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This achievement underscores India’s position as a top global investment destination. The FDI inflows have played a crucial role in propelling the country’s growth, contributing significantly to its expanding economy, which is expected to hit a GDP of $3.89 trillion in 2024, up from $2 trillion in 2014.

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But where is all this investment coming from? Surprisingly, the top investor isn’t the United States or China, as one might expect, but Mauritius. A whopping 25% of all FDI in India has flowed in from this small island nation. Close behind is Singapore, contributing 24% of the total FDI. The United States comes in third with 10%, while other notable contributors include the Netherlands (7%), Japan (6%), the UK (5%), and the UAE (3%).

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The sectors that attracted the highest levels of FDI include services, computer software and hardware, telecommunications, trading, infrastructure development, automobile, chemicals, and pharmaceuticals. The services sector, in particular, saw significant investments, reflecting global confidence in India’s diverse and expanding economy.

What’s even more impressive is the rise in FDI inflows over the past decade. Between 2014 and 2024, India saw a 119% increase in FDI compared to the previous decade, with $667.4 billion inflowing during this period alone. This surge in investments is largely attributed to India’s liberalized investment policies and reforms that have opened up sectors like manufacturing, which saw a 69% rise in FDI in the last ten years.

India’s efforts to boost its ‘Make in India’ initiative have also paid off, as foreign investors are encouraged to take advantage of the country’s growing manufacturing capabilities. Most sectors now allow 100% FDI under the automatic route, simplifying the investment process. However, areas such as telecom, media, and pharmaceuticals still require government approval for foreign investments.

India’s growing appeal to global investors highlights its robust economy, sectoral diversity, and commitment to creating a conducive environment for business and manufacturing.

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