FDI equity inflows jump 43% in July-Sept quarter
New Delhi Foreign direct investment (FDI) equity inflows to India jumped 43% to $13
New Delhi Foreign direct investment (FDI) equity inflows to India jumped 43% to $13.61 billion in the July-September quarter of 2024-25 compared to $9.54 billion in the same period last year, a government official said, citing provisional data.
Singapore, United Arab Emirates and Mauritius accounted for nearly 64% of the FDI equity inflow during the second quarter, the official added requesting anonymity. The commerce and industry ministry is expected to release the data soon.
Maharashtra, Gujarat, Delhi and Karnataka received over 82% of the inflows in Q2 of 2024-25. Most investments went to trading, services, computer software, IT hardware and power sectors, which accounted for nearly 49% of the FDI equity inflow in the quarter.
While Q2 saw a significant year-on-year increase, the inflow was lower than the Q1 figure of $16.18 billion, according to official data published till June.
“Cumulative inflow in the first half of current financial year saw a 45% jump to $29.79 billion compared to $20.49 billion in H1 of 2023-24, signifying enhanced confidence of foreign investors in Indian economy,” the official said. In rupee terms, India attracted foreign equity inflow of ₹2.49 lakh crore in H1 of 2024-25, a 47% increase from ₹1.69 lakh crore in the same period last year.
Singapore led foreign equity contributions with an inflow of $7.53 billion, followed by Mauritius ($5.24 billion), Netherlands ($3.58 billion), UAE ($3.47 billion) and the United States ($2.57 billion).
“FDI equity inflow in the first six months of current fiscal year has already crossed the two-third mark of full financial year of 2023-24 ($44.42 billion), hence total inflow could see a significant jump when this financial year ends on March 31, 2025. This is also because changed geopolitical dynamics after the US election. India will be the natural option if the US puts curbs on Chinese imports. Expected friend-shoring will boost inflows of foreign investments in India,” he said.
Services, including financial services, banking, insurance, outsourcing, R&D, courier and tech testing, are expected to grow rapidly in the next six months. The sector contributed 19% ($5.69 billion) to total FDI equity inflows during H1 of 2024-25, followed by computer software and hardware (14% at $4.19 billion), nonconventional energy (7% at $2.09 billion) and cement and gypsum products (6% at $1.8 billion).
