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India's FDI Hits USD One Trillion

India's FDI Hits USD One Trillion

India has achieved a significant milestone, crossing $1 trillion in Foreign Direct Investment (FDI) since April 2000, according to DPIIT. The cumulative inflow, including equity, reinvested earnings, and other capital, reached $1,033.4 billion by September 2024, cementing India's status as a top global investment destination.

To grasp the enormity of this figure, earning $1 per second would take 31,709 years to hit $1 trillion. Remarkably, this inflow is nearly a quarter of India’s 2024 GDP, estimated at $3.89 trillion, highlighting FDI’s transformative role in India's economic growth.

Mauritius led FDI contributions with 25%, followed by Singapore at 24%. The US ranked third, contributing 10%, with the Netherlands, Japan, and the UK also notable investors. Sectors like services, computer software, telecommunications, and manufacturing attracted the most investment.

The past decade (2014-2024) has been particularly robust, contributing $667.4 billion—an impressive 119% growth over the previous decade. Reforms promoting 100?I through the automatic route in most sectors, coupled with the 'Make in India' initiative, have driven investments, especially in manufacturing, which saw a 69% rise.

FDI remains restricted in sectors like gambling, real estate, and tobacco manufacturing. For other areas, investments either follow the automatic route, requiring post-investment notification to the RBI, or the government approval route for strategic sectors such as telecom and insurance.

With policy liberalization and robust economic fundamentals, India continues to attract global investors, positioning itself as a beacon for FDI and sustainable economic growth.

India's FDI Hits USD One Trillion

India's FDI Hits USD One Trillion
India has achieved a significant milestone, crossing $1 trillion in Foreign Direct Investment (FDI) since April 2000, according to DPIIT. The cumulative inflow, including equity, reinvested earnings, and other capital, reached $1,033.4 billion by September 2024, cementing India's status as a top global investment destination.

To grasp the enormity of this figure, earning $1 per second would take 31,709 years to hit $1 trillion. Remarkably, this inflow is nearly a quarter of India’s 2024 GDP, estimated at $3.89 trillion, highlighting FDI’s transformative role in India's economic growth.

Mauritius led FDI contributions with 25%, followed by Singapore at 24%. The US ranked third, contributing 10%, with the Netherlands, Japan, and the UK also notable investors. Sectors like services, computer software, telecommunications, and manufacturing attracted the most investment.

The past decade (2014-2024) has been particularly robust, contributing $667.4 billion—an impressive 119% growth over the previous decade. Reforms promoting 100?I through the automatic route in most sectors, coupled with the 'Make in India' initiative, have driven investments, especially in manufacturing, which saw a 69% rise.

FDI remains restricted in sectors like gambling, real estate, and tobacco manufacturing. For other areas, investments either follow the automatic route, requiring post-investment notification to the RBI, or the government approval route for strategic sectors such as telecom and insurance.

With policy liberalization and robust economic fundamentals, India continues to attract global investors, positioning itself as a beacon for FDI and sustainable economic growth.

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