New Delhi: Foreign direct investment (FDI) in India surged nearly 26 percent to $42.1 billion in the first half of the fiscal year 2024-25, propelling the country's total FDI inflows to an impressive $1 trillion since the beginning of this century.
This significant milestone underscores India's economic progress, with gross FDI inflows reaching $1 trillion since April 2000.
The Ministry of Commerce and Industry highlighted that this growth is indicative of India's increasing attractiveness as a global investment hub.
"FDI has been instrumental in transforming India's economy by providing essential non-debt financial resources, facilitating technology transfers, and generating job opportunities," the ministry stated.
The Commerce Ministry further noted that initiatives such as 'Make in India', along with liberalized sector policies and the implementation of the Goods and Services Tax (GST), have bolstered investor confidence. Additionally, competitive labor costs and strategic incentives continue to draw multinational corporations to the country.
In the past decade, from April 2014 to September 2024, total FDI inflows reached $709.84 billion, representing 68.69 percent of the overall FDI inflow over the last 24 years.
To encourage foreign direct investment (FDI), the government has established a policy that is favorable to investors, allowing for 100 percent FDI under the automatic route in most sectors, with the exception of a few strategically significant areas.
Additionally, to ease tax compliance for startups and foreign investors, amendments were made to the Income Tax Act of 1961 in 2024, which eliminated angel tax and lowered the income tax rate applicable to foreign companies.
As India continues to adapt to global economic trends, the government is confident in its ability to enhance its position on the international stage, promoting sustainable growth and development.
