Sustaining its ability to attract foreign investment inflows, India has gotten a total foreign direct investment (FDI) inflow of USD 70.9 billion in the financial year 2023-24.
Earlier, the country saw its highest FDI of USD 6 billion in October last year, followed by USD 5.9 billion in January 2024.
Out of the total FDI flows, FDI equity inflow during FY 2023-24 amounted to USD 44.4 billion.
Equity inflows for the quarter from January 2024 to March 2024 reached USD 12 billion, marking a 33 per cent year-on-year growth.
FDI inflow into the construction (infrastructure activities), construction development, and power sectors more than doubled in 2023-24.
Moreover, the cumulative FDI inflow into India reached USD 990 billion, while the cumulative EDI Equity inflow stood at USD 678 billion from April 2000 to March 2024.
Mauritius emerged as the largest contributor to the country’s FDI inflow, accounting for 25 per cent, followed by Singapore at 24 per cent. The USA, the Netherlands, and Japan held shares of 10 per cent, 7 per cent, and 6 per cent respectively from April 2000 to March 2024.
Singapore has been the primary contributor to India’s FDI inflow since 2018-19, with Mauritius leading in 2017-18.
Maharashtra was the top beneficiary of FDI inflow during the financial year 2023-24, receiving 30 per cent, followed by Karnataka with 22 per cent. Gujarat received 17 per cent, while Delhi and Tamil Nadu received 14 per cent and 5 per cent respectively of the total FDI inflows.
FDI serves as a significant driver of economic growth and a crucial source of non-debt finance for the country’s economic development.
