FDI Inflows in India Up by 45% to $29.79 Billion in April-September 2024

Foreign Direct Investment (FDI) in India has witnessed a remarkable 45% year-on-year increase, reaching $29.79 billion in the first half of the current fiscal year (September 2024), according to official data from the government. This surge marks a significant growth from $ 20.5 billion recorded during the same period last year.

Strong Growth Across Key Sectors

The boost in FDI inflows can be attributed to healthy investments in various sectors, including services, telecommunications, computer software and hardware, pharmaceuticals, and chemicals. Notably, FDI equity inflows into the services sector saw a notable jump to $ 5.69 billion, up from $ 3.85 billion in the same period of 2023-24. The telecom sector and the computer software industry also registered significant investments, with further boosts in the automobile and trading sectors. Additionally, FDI in non-conventional energy reached $ 2 billion during this period.

Quarterly Growth: Strong Performance Continues

FDI inflows continued their strong upward trajectory in the July-September quarter, rising by 43 per cent to $ 13.6 billion compared to $ 9.52 billion in the same quarter last year. In the April-June quarter, FDI saw an even sharper increase of 47.8%, totaling $ 16.17 billion.

Top Investors: Mauritius, Singapore, and the US Lead the Pack
India saw significant FDI inflows from major global investors during this period. Mauritius led with $ 5.34 billion, followed by Singapore at $ 7.53 billion and the United States at $ 2.57 billion. Other notable contributors include the Netherlands, UAE, and Cyprus. However, the data also showed a decline in inflows from Japan and the UK, which recorded a fall in investments compared to the previous year.

Maharashtra Leads in State-wise FDI Inflows
On the state level, Maharashtra received the highest FDI inflows, totaling $ 13.55 billion in the April-September period. Karnataka followed with $ 3.54 billion, while Telangana and Gujarat attracted $ 1.54 billion and around $ 4 billion, respectively.

Total FDI, Including Other Capital, Climbs to $ 42.1 Billion
Overall, total FDI, including equity inflows, reinvested earnings, and other capital, surged by 28%, reaching $ 42.1 billion in the first half of fiscal year 2024-25, compared to $ 33.12 billion during the same period in 2023-24. This impressive growth highlights India's continuing appeal as a top destination for foreign investments, underpinned by its strong economic fundamentals and sectoral growth.