In financial year 2024, Singapore accounted for the highest FDI equity inflow to India, which was valued at over 11 billion U.S. dollars, followed by the Mauritius with over seven billion dollars. Singapore accounted for roughly 24 percent of total FDI inflows in fiscal year 2024. Most sought after FDI sectors According to the Department of Promotion of Industry and Internal Trade, higher equity inflows could be attributed to the government’s efforts in improving ease of doing business along with relaxed FDI norms. In fiscal year 2023, the computer and hardware sector received the highest FDI equity inflow, followed by the services sector. How does FDI contribute to economic development? FDI inflows play a significant role in contributing towards the development of the Indian economy. It often results in opening of factories in the destination country. Higher FDI inflows are directly correlated with higher employment in the country. This improves productivity including the quality of processes and supply chains towards achieving global quality standards.

Foreign Direct Investment: Outflow: Bhutan data was reported at 0.454 USD mn in Aug 2018. This records an increase from the previous number of 0.353 USD mn for Jul 2018. Foreign Direct Investment: Outflow: Bhutan data is updated monthly, averaging 0.113 USD mn from Aug 2007 (Median) to Aug 2018, with 89 observations. The data reached an all-time high of 11.463 USD mn in Mar 2009 and a record low of 0.002 USD mn in Dec 2013. Foreign Direct Investment: Outflow: Bhutan data remains active status in CEIC and is reported by Reserve Bank of India. The data is categorized under India Premium Database’s Investment – Table IN.OA026: Foreign Direct Investment: Outflow: by Country.

India Foreign Direct Investment: Outflow: Russia data was reported at 25.593 USD mn in Oct 2018. This records a decrease from the previous number of 56.253 USD mn for Sep 2018. India Foreign Direct Investment: Outflow: Russia data is updated monthly, averaging 4.750 USD mn from Aug 2007 (Median) to Oct 2018, with 98 observations. The data reached an all-time high of 247.720 USD mn in Apr 2009 and a record low of 0.000 USD mn in May 2008. India Foreign Direct Investment: Outflow: Russia data remains active status in CEIC and is reported by Reserve Bank of India. The data is categorized under India Premium Database’s Investment – Table IN.OA026: Foreign Direct Investment: Outflow: by Country.

The total foreign direct investment inflow into India dropped to 70.9 billion U.S. dollars in financial year 2023. This was a one percent decline from last year. FDIs are an important driver of a country’s economy since they boost the job market, technical knowledge base and provide non-debt financial resources. In the case of a developing country like India, foreign investors find the lower job wages and government tax exemptions in FDI a lucrative offer for investments in the country.

FDI in India  

The Indian government has been actively working towards increasing FDI inflows through various policy and financial reforms in the investment processes. According to a UN report in 2022, India was ranked among the top 20 host economies for FDI inflows. The global FDI inflows for fiscal year 2022 aggregated to over one trillion U.S. dollars, out of which over six hundred billion dollars were from the developing Asian region, including India.

Leading FDI investors and sectors in the Indian market

Singaporewas the leading investor in the country with FDI equity investments amounting to over 11 billion U.S. dollars in the financial year 2024 followed by Mauritius. The computer hardware and software sector led the foreign direct investment inflows, with an overall amount of close to 8 billion U.S. dollars for fiscal year 2024, followed by the services sector.

In financial year 2019, the highest amount of foreign direct investments (FDI) to India came from Singapore amounting around 16.3 billion U.S. dollars. Following Singapore, Mauritius and the Netherlands are the second and third largest foreign investors in India. These three countries are known to have Double Taxation Avoidance Agreements (DTAA) that allow them to be popular transit countries for foreign investments.

In 2023, Qatar contributed around one billion U.S. dollars in FDI into India. Between 2018 and 2022, GCC countries had an FDI inflow of over 13.6 billion U.S. dollars into India, with UAE as the major source among GCC countries.

Foreign Direct Investment: Outflow: Loan: Bahrain data was reported at 0.143 USD mn in Oct 2018. This records an increase from the previous number of 0.125 USD mn for Sep 2018. Foreign Direct Investment: Outflow: Loan: Bahrain data is updated monthly, averaging 0.157 USD mn from Nov 2007 (Median) to Oct 2018, with 80 observations. The data reached an all-time high of 4.634 USD mn in Oct 2010 and a record low of 0.003 USD mn in Jan 2009. Foreign Direct Investment: Outflow: Loan: Bahrain data remains active status in CEIC and is reported by Reserve Bank of India. The data is categorized under India Premium Database’s Investment – Table IN.OA026: Foreign Direct Investment: Outflow: by Country.

Computer hardware and software sector in India received the highest share in FDIs amounting to over seven billion U.S. dollars in fiscal year 2024. The services sector came second amounting to over six billion dollars. Services sector in limelight All in all, the business services sector in the country seemed to be faring very well in terms of attention from foreign investors. One possible reason for this could be because almost 65 percent of the registered foreign companies in India were under this sector. Out of this, most companies were registered in Delhi, followed by Maharashtra indicating a good business trajectory. FDIs to aid an ailing economyForeign investments play a critical role in developing countries since they help bring in resources, latest technologies and best practices that help push economic growth on to a higher curve. In August 2019, India opened its doors further to FDIs by loosening its grip on the sourcing requirements for various sectors. The government also allowed 100 percent FDI in sectors like commercial coal mining and contract manufacturing, hoping to diversify its supply chains. These were just some of the measures being taken by the government in order to give a stimulus to the ailing economy.

The graph shows the distribution of Indian foreign direct investment (FDI) in Latin America and the Caribbean from 2008 to the first quarter of 2017, broken down by country. In the presented period, investments in Brazil accounted for 42 percent of India's total FDI in Latin America.

In 2023, GCC countries had an FDI inflow of 3.7 billion U.S. dollars into India. The countries had a cumulative FDI inflow in India of over 13.6 billion U.S. dollars into India between 2018 and 2022. The inflows peaked in the year 2020.

Foreign Direct Investment: Outflow: Equity: Nigeria data was reported at 0.087 USD mn in Oct 2018. This records a decrease from the previous number of 0.243 USD mn for Sep 2018. Foreign Direct Investment: Outflow: Equity: Nigeria data is updated monthly, averaging 0.143 USD mn from Jul 2007 (Median) to Oct 2018, with 104 observations. The data reached an all-time high of 8.407 USD mn in Jan 2015 and a record low of 0.000 USD mn in Dec 2016. Foreign Direct Investment: Outflow: Equity: Nigeria data remains active status in CEIC and is reported by Reserve Bank of India. The data is categorized under India Premium Database’s Investment – Table IN.OA026: Foreign Direct Investment: Outflow: by Country.

In 2023, India contributed over two billion U.S. dollars in FDI into UAE. During the period of 2018 to 2022, cumulative FDI from India to GCC countries reached 5.4 billion U.S. dollars.

In 2023, Saudi Arabia contributed 68 million U.S. dollars in FDI to India. Between 2018 and 2022, GCC countries had an FDI inflow of over 13.6 billion U.S. dollars into India, with UAE as the major source among all GCC countries.

Graph and download economic data for Financial Account: Liabilities: Direct Foreign Investment in Reporting Country for India (DISCONTINUED) (BPFADI03INA637N) from 1991 to 2008 about FDI, financial account, foreign, BOP, India, liabilities, investment, and financial.

The dataset contains All India and Yearly Distribution of Foreign Direct Investment Companies - Industry and Country of Origin Wise

Note: 1. Data for the reporting year 2019–20 is not available in the source

Foreign Direct Investment: Outflow: Equity: Mexico data was reported at 0.020 USD mn in Jun 2018. This records an increase from the previous number of 0.010 USD mn for May 2018. Foreign Direct Investment: Outflow: Equity: Mexico data is updated monthly, averaging 0.290 USD mn from Sep 2007 (Median) to Jun 2018, with 92 observations. The data reached an all-time high of 3.816 USD mn in Aug 2009 and a record low of 0.000 USD mn in Jul 2016. Foreign Direct Investment: Outflow: Equity: Mexico data remains active status in CEIC and is reported by Reserve Bank of India. The data is categorized under India Premium Database’s Investment – Table IN.OA026: Foreign Direct Investment: Outflow: by Country.

In 2023, contributed 1.4 million U.S. dollars in FDI into India. Between 2018 and 2022, GCC countries had an FDI inflow of over 13.6 billion U.S. dollars into India, with UAE as the major source among all GCC countries.

The value of foreign direct investments from India into UAE in 2023 was over two billion U.S. dollars. During the period of 2018 to 2022, cumulative FDI from India to UAE reached over 3.9 billion U.S. dollars.

Foreign Direct Investment: Outflow: Equity: Mozambique data was reported at 0.232 USD mn in Oct 2018. This records a decrease from the previous number of 4.458 USD mn for Jul 2018. Foreign Direct Investment: Outflow: Equity: Mozambique data is updated monthly, averaging 0.127 USD mn from Jan 2008 (Median) to Oct 2018, with 55 observations. The data reached an all-time high of 2.640 USD bn in Mar 2014 and a record low of 0.002 USD mn in Dec 2010. Foreign Direct Investment: Outflow: Equity: Mozambique data remains active status in CEIC and is reported by Reserve Bank of India. The data is categorized under India Premium Database’s Investment – Table IN.OA026: Foreign Direct Investment: Outflow: by Country.

In 2023, a deficit of approximately 122 million Malaysian ringgit in net inflows of foreign direct investment (FDI) from India to Malaysia was recorded. The foreign direct investment is a type of investment in the form of controlling ownership made by an individual or a corporation in one country into a business located in another country.