FDI @ 2025: Good news is also coming out for the year 2025 regarding foreign direct investment in the country. DPIIT says that due to the government’s policies, India still remains a favorite destination for foreign investors.
The year 2024 is coming to an end and the new year is once again bringing new hopes for the future. The Indian economy also has high hopes for the year 2025 and according to the Department of Industry and Internal Promotion (DPIIT), the next year is going to prove to be good for India on the foreign investment front.
DPIIT says that despite global uncertainties and challenges, the average monthly foreign direct investment (FDI) inflows into India have been over $4.5 billion since January 2024. This trend is expected to continue in 2025 as the Prime Minister Narendra Modi-led government promotes investor-friendly measures in the country.
According to DPIIT, investor-friendly policies, strong returns on investment, skilled workforce, low compliance burden, elimination of small scale industry-related offences, National Single Window System for streamlined approvals and clearances and Production Linked Incentive (PLI) schemes are creating ample opportunities to attract foreign investors to India. Further, to ensure that India remains an attractive and investor-friendly destination, the government reviews the FDI policy on a continuous basis.
How much was FDI?
During the January-September period this year, foreign direct investment (FDI) in the country increased by about 42 percent to $42.13 billion. In the same period last year, FDI was $29.73 billion. In April-September 2024-25, FDI inflows increased by 45 percent to $29.79 billion, from $20.48 billion in the same period last fiscal. Total FDI in 2023-24 was $71.28 billion.
What is expected from 2025?
Amardeep Singh Bhatia, Secretary, Department of Promotion of Industry and Internal Trade, said that as per the trend, the country will continue to attract good foreign direct investment in 2025 as well. India continues to open its economy to global investors by increasing foreign investment limits, removing regulatory hurdles, developing infrastructure and improving the business environment.
FDI increased in 10 years
During the last ten years (2004-2024), a total FDI inflow of US$ 991 billion was recorded, of which 67 percent (US$ 667 billion) was received in just 10 years i.e. 2014-2024. From US$ 98 billion in 2004-2014 to US$ 165 billion in 2014-2024, FDI equity inflows in the manufacturing sector have increased by 69 percent. India continues to be a preferred investment destination for global companies.
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