In financial year 2025, ********* accounted for the highest FDI equity inflow to India, which was valued at nearly ** billion U.S. dollars, followed by the ********* with over ***** billion dollars. Singapore accounted for roughly ** percent of total FDI inflows in fiscal year 2025. 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.

The total foreign direct investment inflow into India dropped reached over ** billion U.S. dollars. FDIs are an important driver of a country’s economy as they boost the job market, technical knowledge base, and provide non-debt financial resources. FDI in India   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. 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, India was ranked among the top 20 host economies for FDI inflows. Leading FDI investors and sectors in the Indian market Singapore was the leading investor in the country with FDI equity investments amounting to over ** billion U.S. dollars in the financial year 2025, followed by Mauritius. The services sector led in terms of FDI inflows, followed by the computer hardware and software sectors.

India Foreign Direct Investment: Inflow: Australia data was reported at 1,938.910 INR mn in 2018. This records a decrease from the previous number of 2,967.010 INR mn for 2017. India Foreign Direct Investment: Inflow: Australia data is updated yearly, averaging 1,941.600 INR mn from Dec 2000 (Median) to 2018, with 19 observations. The data reached an all-time high of 8,862.160 INR mn in 2015 and a record low of 260.630 INR mn in 2005. India Foreign Direct Investment: Inflow: Australia data remains active status in CEIC and is reported by Department of Industrial Policy and Promotion. The data is categorized under Global Database’s India – Table IN.OA022: Foreign Direct Investment: Inflow: Annual: by Country.

Foreign Direct Investment: Inflow: Sudan data was reported at 0.200 INR mn in 2011. This records a decrease from the previous number of 2.160 INR mn for 2008. Foreign Direct Investment: Inflow: Sudan data is updated yearly, averaging 0.000 INR mn from Dec 2000 (Median) to 2011, with 6 observations. The data reached an all-time high of 2.160 INR mn in 2008 and a record low of 0.000 INR mn in 2003. Foreign Direct Investment: Inflow: Sudan data remains active status in CEIC and is reported by Department of Industrial Policy and Promotion. The data is categorized under Global Database’s India – Table IN.OA022: Foreign Direct Investment: Inflow: Annual: by Country.

Services sector in India received the highest share of FDI, amounting to over **** billion U.S. dollars in fiscal year 2025. The computer hardware and software sector came second, amounting to nearly ***** 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 ** 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 *** 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.

India Foreign Direct Investment: Inflow: Sri Lanka data was reported at 820.000 INR mn in 2018. This records a decrease from the previous number of 1,965.660 INR mn for 2017. India Foreign Direct Investment: Inflow: Sri Lanka data is updated yearly, averaging 91.460 INR mn from Dec 2000 (Median) to 2018, with 19 observations. The data reached an all-time high of 1,965.660 INR mn in 2017 and a record low of 0.000 INR mn in 2000. India Foreign Direct Investment: Inflow: Sri Lanka data remains active status in CEIC and is reported by Department of Industrial Policy and Promotion. The data is categorized under Global Database’s India – Table IN.OA022: Foreign Direct Investment: Inflow: Annual: by Country.

India's foreign direct investment equity inflows increased by ** percent in financial year 2025 when compared to the previous fiscal year. Overall, the FDI inflow in the country has been oscillating between highs and lows in terms of FDI growth. This is largely owing to the unsure nature of investment deals from one year to the other, along with market fluctuations.

In 2023, the UAE was the major source of FDI into India, contributing over *** billion U.S. dollars. Qatar and Saudi Arabia followed it. GCC countries had an FDI inflow of over **** billion U.S. dollars into India between 2018 and 2022.

India Foreign Direct Investment: Inflow: Argentina data was reported at 5.650 INR mn in 2018. This records an increase from the previous number of 1.750 INR mn for 2017. India Foreign Direct Investment: Inflow: Argentina data is updated yearly, averaging 0.040 INR mn from Dec 2000 (Median) to 2018, with 15 observations. The data reached an all-time high of 462.110 INR mn in 2010 and a record low of 0.000 INR mn in 2006. India Foreign Direct Investment: Inflow: Argentina data remains active status in CEIC and is reported by Department of Industrial Policy and Promotion. The data is categorized under Global Database’s India – Table IN.OA022: Foreign Direct Investment: Inflow: Annual: by Country.

India Foreign Direct Investment: Inflow: Afghanistan data was reported at 13.310 INR mn in 2018. This records an increase from the previous number of 0.100 INR mn for 2017. India Foreign Direct Investment: Inflow: Afghanistan data is updated yearly, averaging 0.000 INR mn from Dec 2000 (Median) to 2018, with 12 observations. The data reached an all-time high of 122.750 INR mn in 2016 and a record low of 0.000 INR mn in 2006. India Foreign Direct Investment: Inflow: Afghanistan data remains active status in CEIC and is reported by Department of Industrial Policy and Promotion. The data is categorized under Global Database’s India – Table IN.OA022: Foreign Direct Investment: Inflow: Annual: by Country.

In 2023, a deficit of approximately *** 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.

India Foreign Direct Investment: Inflow: Bangladesh data was reported at 1.000 INR mn in 2018. This records a decrease from the previous number of 1.500 INR mn for 2015. India Foreign Direct Investment: Inflow: Bangladesh data is updated yearly, averaging 7.100 INR mn from Dec 2000 (Median) to 2018, with 9 observations. The data reached an all-time high of 154.510 INR mn in 2003 and a record low of 0.000 INR mn in 2001. India Foreign Direct Investment: Inflow: Bangladesh data remains active status in CEIC and is reported by Department of Industrial Policy and Promotion. The data is categorized under Global Database’s India – Table IN.OA022: Foreign Direct Investment: Inflow: Annual: by Country.

India Foreign Direct Investment: Inflow: Russia data was reported at 193.590 INR mn in 2018. This records a decrease from the previous number of 2,367.620 INR mn for 2017. India Foreign Direct Investment: Inflow: Russia data is updated yearly, averaging 963.810 INR mn from Dec 2000 (Median) to 2018, with 19 observations. The data reached an all-time high of 28,661.400 INR mn in 2014 and a record low of 1.700 INR mn in 2003. India Foreign Direct Investment: Inflow: Russia data remains active status in CEIC and is reported by Department of Industrial Policy and Promotion. The data is categorized under Global Database’s India – Table IN.OA022: Foreign Direct Investment: Inflow: Annual: by Country.

India Foreign Direct Investment: Inflow: Malta data was reported at 63.630 INR mn in 2018. This records an increase from the previous number of 37.590 INR mn for 2017. India Foreign Direct Investment: Inflow: Malta data is updated yearly, averaging 34.300 INR mn from Dec 2000 (Median) to 2018, with 15 observations. The data reached an all-time high of 277.200 INR mn in 2007 and a record low of 0.000 INR mn in 2001. India Foreign Direct Investment: Inflow: Malta data remains active status in CEIC and is reported by Department of Industrial Policy and Promotion. The data is categorized under Global Database’s India – Table IN.OA022: Foreign Direct Investment: Inflow: Annual: by Country.

India Foreign Direct Investment: Inflow: Israel data was reported at 1,257.740 INR mn in 2018. This records a decrease from the previous number of 2,135.630 INR mn for 2017. India Foreign Direct Investment: Inflow: Israel data is updated yearly, averaging 77.180 INR mn from Dec 2000 (Median) to 2018, with 19 observations. The data reached an all-time high of 2,135.630 INR mn in 2017 and a record low of 0.000 INR mn in 2000. India Foreign Direct Investment: Inflow: Israel data remains active status in CEIC and is reported by Department of Industrial Policy and Promotion. The data is categorized under Global Database’s India – Table IN.OA022: Foreign Direct Investment: Inflow: Annual: by Country.

India Foreign Direct Investment: Inflow: INR: Austria data was reported at 83.150 INR mn in Dec 2018. This records a decrease from the previous number of 1,496.130 INR mn for Sep 2018. India Foreign Direct Investment: Inflow: INR: Austria data is updated quarterly, averaging 308.145 INR mn from Dec 2008 (Median) to Dec 2018, with 40 observations. The data reached an all-time high of 2,299.380 INR mn in Mar 2016 and a record low of 19.380 INR mn in Dec 2010. India Foreign Direct Investment: Inflow: INR: Austria data remains active status in CEIC and is reported by Department of Industrial Policy and Promotion. The data is categorized under India Premium Database’s Investment – Table IN.OA004: Foreign Direct Investment Inflow: by Country: INR.

India Foreign Direct Investment: Inflow: Peru data was reported at 24.200 INR mn in 2018. This records an increase from the previous number of 2.840 INR mn for 2017. India Foreign Direct Investment: Inflow: Peru data is updated yearly, averaging 0.370 INR mn from Dec 2000 (Median) to 2018, with 11 observations. The data reached an all-time high of 24.200 INR mn in 2018 and a record low of 0.000 INR mn in 2003. India Foreign Direct Investment: Inflow: Peru data remains active status in CEIC and is reported by Department of Industrial Policy and Promotion. The data is categorized under Global Database’s India – Table IN.OA022: Foreign Direct Investment: Inflow: Annual: by Country.

India Foreign Direct Investment: Inflow: Greece data was reported at 8.560 INR mn in 2018. This records a decrease from the previous number of 152.780 INR mn for 2017. India Foreign Direct Investment: Inflow: Greece data is updated yearly, averaging 8.220 INR mn from Dec 2000 (Median) to 2018, with 18 observations. The data reached an all-time high of 154.500 INR mn in 2014 and a record low of 0.000 INR mn in 2002. India Foreign Direct Investment: Inflow: Greece data remains active status in CEIC and is reported by Department of Industrial Policy and Promotion. The data is categorized under Global Database’s India – Table IN.OA022: Foreign Direct Investment: Inflow: Annual: by Country.

India Foreign Direct Investment: Inflow: Mexico data was reported at 751.670 INR mn in 2018. This records an increase from the previous number of 209.600 INR mn for 2017. India Foreign Direct Investment: Inflow: Mexico data is updated yearly, averaging 1.650 INR mn from Dec 2000 (Median) to 2018, with 17 observations. The data reached an all-time high of 2,952.490 INR mn in 2012 and a record low of 0.000 INR mn in 2003. India Foreign Direct Investment: Inflow: Mexico data remains active status in CEIC and is reported by Department of Industrial Policy and Promotion. The data is categorized under Global Database’s India – Table IN.OA022: Foreign Direct Investment: Inflow: Annual: by Country.

India Foreign Direct Investment: Inflow: Nigeria data was reported at 55.980 INR mn in 2018. This records an increase from the previous number of 9.900 INR mn for 2017. India Foreign Direct Investment: Inflow: Nigeria data is updated yearly, averaging 16.680 INR mn from Dec 2000 (Median) to 2018, with 19 observations. The data reached an all-time high of 150.670 INR mn in 2011 and a record low of 0.000 INR mn in 2000. India Foreign Direct Investment: Inflow: Nigeria data remains active status in CEIC and is reported by Department of Industrial Policy and Promotion. The data is categorized under Global Database’s India – Table IN.OA022: Foreign Direct Investment: Inflow: Annual: by Country.