Foreign Direct Investment (FDI) inflows into India have crossed the USD one trillion milestone in the April 2000-September 2024 period, firmly establishing the country’s reputation as a safe and key investment destination globally.

This landmark achievement was bolstered by a nearly 26 per cent rise in FDI to USD 42.1 billion during the first half of the current fiscal year.

According to data from the Department for Promotion of Industry and Internal Trade (DPIIT), over the last decade (April 2014 to September 2024), total FDI inflows amounted to USD 709.84 billion, accounting for 68.69 per cent of the overall FDI inflow in the past 24 years.

The Ministry of Commerce & Industry on the FDI growth said initiatives like “Make in India,” liberalised sectoral policies, and the Goods and Services Tax (GST) have enhanced investor confidence, while competitive labour costs and strategic incentives continue to attract multinational corporations.

As per the DPIIT data, about 25 per cent of the FDI came through the Mauritius route followed by Singapore (24 per cent), the US (10 per cent), the Netherlands (7 per cent), Japan (6 per cent), the UK (5 per cent), UAE (3 per cent) and Cayman Islands, Germany and Cyprus accounted for 2 per cent each.

India received USD 177.18 billion from Mauritius, USD 167.47 billion from Singapore and USD 67.8 billion from the US during the period under review, as per the data.

Further, the key sectors attracting the maximum of these inflows include the services segment, computer software and hardware, telecommunications, trading, construction development, automobile, chemicals, and pharmaceuticals.

The Commerce Ministry has attributed this to a range of contributing factors for the FDI growth.

It said that from 43rd in 2021, India’s ranking in the World Competitive Index 2024 jumped three positions to 40th. Additionally, India was named as the 48th most innovative country among the top 50 nations, securing the 40th position out of 132 economies in the Global Innovation Index 2023, a significant improvement from its 81st position in 2015.

It also highlighted its progress in the global investment standing saying the country was the third largest recipient of greenfield projects with 1,008 greenfield project announcements, as per the World Investment Report 2023.

Further, India made remarkable progress in improving its business environment, climbing from 142nd in 2014 to 63rd in the World Bank’s Doing Business Report (DBR) 2020, published in October 2019 before its discontinuation.