69% of $1 Trillion FDI into India Received in the Last Decade: Government

Total FDI inflows into India in the last decade (April 2014 to September 2024) stood at $709.84 billion, which translated into 68.69 percent of the total FDI inflow in the last 24 years that crossed $1 trillion, said the year-end review released by the Commerce and Industry Ministry on Thursday.

This landmark achievement was supported by a nearly 26 per cent increase in FDI to $42.1 billion during the first half of the current fiscal year," the review said.

Such growth reflects India's increasing appeal as a global investment destination, driven by a proactive policy framework, a dynamic business environment, and increasing international competitiveness, the statement said.

FDI has played a transformational role in India's development by providing substantial non-debt financial resources, encouraging technology transfers, and creating employment opportunities.

Initiatives such as 'Make in India,' liberalized sectoral policies, and Goods and Services Tax (GST) have enhanced investor confidence, while competitive labor costs and strategic incentives continue to attract multinational corporations.

According to the Ministry, a number of factors have contributed to India's remarkable achievement in attracting FDI.

Improved global competitiveness, a dynamic innovation ecosystem, and a business-friendly environment have been key drivers.

Initiatives such as 'Make in India,' liberalisation of sectoral policies, and recent policy changes, including greater FDI in the space sector, reflect the country's proactive approach.

Aligning with global economic trends, India is well-positioned to play a more enhanced role in the future, with sustainable growth and development.

India's ranking in the World Competitive Index 2024 climbed three positions to 40th, from 43rd in 2021.

In addition, India was ranked as the 48th most innovative nation among the top 50 countries, ranked 40th among 132 economies in the Global Innovation Index 2023, having improved from its 81st ranking in 2015.
These rankings further point to improvements in the country in development and furthering its innovation ecosystem and competitiveness.

Improvement in country's global investment ranking
It emerged as the third-largest recipient of greenfield projects with 1,008 project announcements according to the World Investment Report 2023.

The international project finance deals also grew by 64 per cent in India and thus ranked as the recipient of the second-largest number of international project finance deals.

Thus, these statistics speak about the growing stature of India on the global investment platform.

India has also been doing wonderfully well in reforming its business environment, advancing 79 ranks over five years, from 142nd place in 2014 to 63rd in the World Bank's Doing Business Report 2020, published in October 2019 before the report was phased out.

This 79-rank jump over five years reflects the government's sustained efforts to simplify regulations, reduce bureaucratic hurdles, and create a more business-friendly environment, significantly boosting investor confidence, the statement said.

For encouraging FDI, the government has created an investor-friendly policy under which most sectors, except a few strategically-important sectors, are allowed 100 per cent FDI under the automatic route.

Besides, for the ease of tax compliance by startups and foreign investors, the Income Tax Act, 1961 was amended in 2024 for scrapping Angel Tax and to decrease the Income Tax rate chargeable on the income of a foreign company, it included.