Foreign Investors Align With India’s Opportunity As FDI Inflows Surge In Last Decade

New Delhi: India attracted over $500 billion in FDI fairness inflows between 2014 and 2024 which is greater than double the $208 billion gained within the previous decade, consistent with Sanjay Nayar, President of main trade chamber Assocham. 

Notably, $300 billion of this got here between 2019 and 2024 by myself, underscoring an speeded up enlargement trajectory, he discussed in a media article.

“This surge is attributed to transformative reforms like Make in India, Digital India, and the Production Linked Incentive (PLI) schemes, which have not only enhanced the ease of doing business but also positioned India as a hub for clean technology and sustainable growth,” Nayar wrote in The Economic Times.

The production and the virtual infrastructure sectors noticed the resurgence within the remaining decade. While laptop tool and {hardware} gained $95 billion in FDI since 2014, services and products (from finance and IT to R&D and consultancy) attracted some other $77 billion.

In 2014, 75–80 consistent with cent of India’s smartphones have been imported. Now, because of the PLI scheme, world primary like Apple, via Foxconn and Wistron, at the moment are assembling iPhones in India. Smartphone exports have surged to $21 billion.

Foreign buyers have additionally aligned with India’s inexperienced ambitions. From renewable power to electrical mobility, India is speedy turning into a core node within the world clean-tech worth chain, stated Nayar.

India’s FDI inflows higher to $81.04 billion in FY 2024-25, marking a 14 consistent with cent build up from $71.28 billion in FY 2023–24, consistent with a commentary issued by way of the Ministry of Commerce and Industry remaining month.

There has been a gradual upward thrust in the yearly waft of FDI into the rustic during the last 11 years, from $36.05 billion in FY 2013-14, because of the investor-friendly coverage, underneath which maximum sectors are open for 100 consistent with cent FDI during the automated direction.

The services and products sector emerged as the highest recipient of FDI fairness in FY 2024–25, attracting 19 consistent with cent of general inflows, adopted by way of laptop tool and {hardware} (16 consistent with cent), and buying and selling (8 consistent with cent). FDI into the services and products sector rose by way of 40.77 consistent with cent to $9.35 billion from $6.64 billion within the earlier 12 months.

India could also be turning into a hub for production FDI, which grew by way of 18 consistent with cent in FY 2024–25, achieving $19.04 billion in comparison to $16.12 billion in FY 2023–24. Maharashtra accounted for the best proportion (39 consistent with cent) of general FDI fairness inflows in FY 2024–25, adopted by way of Karnataka (13 consistent with cent) and Delhi (12 consistent with cent).

Among supply international locations, Singapore led with a 30 consistent with cent proportion, adopted by way of Mauritius (17 consistent with cent) and the United States (11 consistent with cent), consistent with the ministry knowledge.