India witnessed a strong surge in foreign direct investment (FDI) during the first quarter of the current financial year, with inflows rising 15% year-on-year to $18.62 billion, according to government data released on Wednesday.
In the April–June quarter of FY24, India had attracted $16.17 billion in FDI. The total FDI inflows—which include equity inflows, reinvested earnings, and other capital—stood at $25.2 billion in Q1 FY25, higher than $22.5 billion in the same period last year.
A notable highlight of the quarter was the sharp increase in investments from the United States, which nearly tripled to $5.61 billion, reflecting renewed investor optimism and strengthening bilateral economic ties.
On the sectoral front, the computer software and hardware segment remained the largest beneficiary, drawing $5.46 billion in equity inflows. The services sector followed, securing $3.28 billion, underscoring India’s position as a global hub for technology and professional services.
Officials attributed the growth to robust investor confidence in India’s economic fundamentals, as well as ongoing policy reforms aimed at improving the ease of doing business and attracting global capital. Measures such as streamlined approval processes, sectoral liberalization, and infrastructure development have played a significant role in boosting foreign investments.
Experts believe that sustained momentum in FDI inflows will not only strengthen India’s external sector but also help create jobs, drive innovation, and support the country’s long-term growth ambitions.
With global capital looking for stable and high-growth markets, India’s diversified economy and reform-driven policies continue to position it as a preferred investment destination.
