The net foreign direct investment (FDI) in India declined to $1.4 billion during the 10 months of 2024-25 (April 2024-January 2025) from $11.5 billion a year ago, owing to higher repatriation and outward FDI from India.
However, gross FDI remained elevated, with 12.4 per cent year-on-year (Y-o-Y) growth to $67.7 billion in the April 2024-January 2025 period from $60.2 billion in April 2023-January 2024, according to Reserve Bank of India data.
Repatriation/divestment by those who made direct investments in India rose to $46.1 billion during the 10-month period of 2024-2025, up from $36.9 billion in April 2023-January 2024, RBI data showed.
Overseas investments made by Indian firms -- outward FDI -- rose sharply to $20.2 billion in April 2024-January 2025 from $11.8 billion a year ago. The State of the Economy report in the RBI's March 2025 bulletin noted that, sector-wise, manufacturing received the highest share of equity inflows, followed by financial services, electricity and other energy, and communication services.
Over 75 per cent of the flows were from Singapore, Mauritius, the US, the UAE, and The Netherlands during the period. In terms of globally announced greenfield FDI projects, India ranked second after the US in 2024, up from the sixth position in 2020.Of the total FDI projects announced worldwide, worth $1.8 trillion in 2024, India accounted for around 6 per cent (over $100 billion).Emerging sectors renewables, communications, semiconductors, and metals remained the most attractive FDI sectors globally in 2024. In India, metals, renewable energy, and semiconductors were the top industries, accounting for about 60 per cent of the total announced FDI projects in 2024, it said.
-- Abhijit Lele, Business Standard
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