No Declining Trend in FDI into India, Asserts Piyush Goyal
Commerce Minister Piyush Goyal asserted there's no declining trend in Foreign Direct Investment (FDI) into India, despite periodic fluctuations due to global interest rates. He noted India attracted USD 748.78 billion in FDI over the last eleven years (2014-25), a 143% increase from the prior eleven years. In 2024-25, India received USD 81 billion in FDI, the highest in three years, with Singapore being the largest source.
Unpacked:
Fluctuations in India’s FDI are influenced by global interest rate changes, investor sentiment, and macroeconomic conditions. Recent years have also seen large repatriations and outward investments by Indian companies, which temporarily reduced net FDI despite strong gross inflows.
India’s FDI growth has outpaced many peers over the past decade, with cumulative inflows reaching $1 trillion since 2000. However, some emerging markets may attract higher FDI per capita or in specific sectors, highlighting both India’s strong performance and areas for further competitiveness.
Key sectors with notable FDI growth include services, trading, telecommunications, automobiles, construction, non-conventional energy, and chemicals. These areas reflect India’s focus on technology, infrastructure, and sustainable development.
Recent years saw investors withdrawing large sums due to profitable exits and Indian firms investing overseas, causing a sharp drop in net FDI—even as gross inflows remained robust. This trend has led to record-low net FDI figures despite overall positive investment trends.