Thu Dec 12 21:31:55 UTC 2024: ## India Surpasses $1 Trillion in Foreign Direct Investment

**NEW DELHI** – India has achieved a major economic milestone, surpassing $1 trillion in cumulative foreign direct investment (FDI) since the year 2000. The Department for Promotion of Industry and Internal Trade (DPIIT) announced that between April 2000 and September 2024, India received $1,033.40 billion in FDI, encompassing equity, reinvested earnings, and other capital.

This significant inflow represents a substantial portion of India’s current GDP of approximately $3.89 trillion, highlighting the country’s growing attractiveness as a global investment hub. The figure is particularly impressive considering that India’s GDP was around $2 trillion just a decade ago.

Surprisingly, the largest source of FDI wasn’t the United States or China, but Mauritius, contributing a remarkable 25% of the total. Singapore followed closely behind at 24%, with the US at a distant third (10%). Other significant contributors included the Netherlands, Japan, the UK, and the UAE.

The services sector, particularly computer software and hardware, telecommunications, and trading, received the highest investment. However, significant inflows also went into construction, infrastructure, automobiles, chemicals, and pharmaceuticals. The manufacturing sector experienced a notable 69% increase in FDI over the past decade, boosted by the “Make in India” initiative.

The last ten years (2014-2024) alone witnessed a surge in FDI, totaling $667.4 billion – a 119% increase compared to the previous decade. This influx spread across nearly 60 sectors and 31 states and union territories.

India’s liberalized investment policies, allowing 100% FDI under the automatic route in most sectors, have played a crucial role in attracting this investment. However, certain sectors, including lottery, gambling, and tobacco manufacturing, remain off-limits to foreign investment. Others, such as telecom, media, pharmaceuticals, and insurance, require government approval.

Read More