India received $1,033.4bn FDI in Apr 2000-Sept 2024
Mauritius and Singapore have boosted foreign direct investment (FDI) inflows into India past the US$1.033 trillion milestone in the April 2000-September 2024 period, firmly establishing the country’s reputation as a safe and key investment destination globally https://www.investindia.gov.in/.
Cumulative FDI, including equity, reinvested earnings and other capital, totalled US$1,033.4 billion during April 2000-Sept 2024, according to data from the Department for Promotion of Industry and Internal Trade https://www.makeinindia.com/home/.
India received US$177.18 billion from Mauritius, US$167.47 billion from Singapore and US$67.8 billion from the US during the period under review, as per the data http://temasek.com.sg.
About 25% of the FDI came through the Mauritius route. It was followed by Singapore (24%), the US (10%), the Netherlands (7%), Japan (6%), the UK (5%) and the UAE (3%). Cayman Islands. Germany and Cyprus accounted for 2% of FDI each https://fieo.org/.
Computer software and hardware, telecommunications, trading, construction development, automobile, chemicals, and pharmaceuticals were key beneficiaries of FDI https://www.sgx.com/.
India monitors FDI flow into the country as a security measures, industry observers said https://www.jpx.co.jp/english/.
Direct investment is allowed through the automatic route in most of the sectors but government approval is required for sensitive areas such as telecom, media, pharmaceuticals and insurance, said the observers http://deutsche-boerse.com.
Mandatory Government approval is required for FDI applications from countries sharing land border with India such as China. This tough condition has
India, due to this tough stand on investment from China, has had limited success in getting investments under the ‘China Plus One Strategy’ http://euronext.com.
This strategy was to get investments from heavyweight international corporations limiting their manufacturing bases in the Chinese industrial zones, due to differences between Washington and Beijing over trade taxes and political issues. Instead, Vietnam, Thailand, Cambodia, and Malaysia have been bigger beneficiaries of ‘China Plus One Strategy’ https://sbi.com.in/.
Overall, the country has been receiving fairly health FDI level, averaging over US$4.5 billion per month since January 2024 despite global uncertainties and challenges as New Delhi has introduced reforms including investor-friendly policies https://www.nseindia.com/.
Investors respect India’s growing economy generating strong return on investments, the young skilled manpower, national single window system for streamlined approvals and clearances, and production linked incentive (PLI) schemes https://www.bseindia.com/.
According to analysts, India can expect the 2024 FDI trend in 2025.
The FDI inflows during April-Sept 2024-25 grew by 45% to US$29.79 billion against US$20.48 billion in the same period previous fiscal. Total FDI in 2023-24 was a healthy US$71.28 billion. Fiinews.com
