Foreign Direct Investment In India Surpasses USD 1 Tn Since 2000

(MENAFN- KNN India) New Delhi, Dec 9 (KNN) India has achieved a significant economic milestone by attracting over USD 1 trillion in foreign direct investment (FDI) between April 2000 and September 2024, underscoring its emergence as a premier global investment destination.

According to data from the Department for Promotion of industry and Internal Trade (DPIIT), the cumulative FDI, encompassing equity, reinvested earnings, and other capital, reached USD 1,033.40 billion during this period.

The investment landscape reveals a diverse geographical spread, with Mauritius leading the investment route at 25 per cent, followed closely by Singapore at 24 per cent.

The United States contributed 10 per cent of the total investments, while the Netherlands, Japan, the United Kingdom, and the United Arab Emirates rounded out the top contributors.

Specific investment figures highlight Mauritius at USD 177.18 billion, Singapore at USD 167.47 billion, and the United States at USD 67.8 billion.

Key economic sectors driving these investments include services, computer software and hardware, telecommunications, trading, construction development, automobile manufacturing, chemicals, and pharmaceuticals.

The government's strategic approach of keeping most sectors open for 100 per cent FDI under the automatic route has been instrumental in attracting these investments.

Since 2014, India has witnessed a remarkable 119 per cent increase in cumulative FDI inflows compared to the previous decade, totaling USD 667.4 billion.

The manufacturing sector has been particularly robust, attracting USD 165.1 billion over the past decade, representing a 69 per cent increase from the 2004-2014 period.

Experts anticipate continued momentum in 2025, citing India's strong macroeconomic fundamentals, improving industrial output, and attractive production-linked incentive (PLI) schemes.

However, they also caution that geopolitical challenges and potential policy changes in major economies could introduce volatility to capital flows.

The government remains committed to maintaining India's attractiveness as an investment destination through ongoing policy reviews and stakeholder consultations.

While FDI is permitted through automatic and government approval routes across most sectors, certain areas like lottery, gambling, and specific real estate activities remain prohibited.

As India looks forward, foreign direct investment is expected to play a crucial role in supporting infrastructure development, maintaining balance of payments, and supporting the Indian rupee's stability.

The diverse investment landscape and continued global interest underscore India's potential as a dynamic and promising economic destination.

(KNN Bureau)

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