‘Most preferred destination’: Piyush Goyal says FDI inflows into India rising rapidly 

Foreign Direct Investment (FDI) inflows into India are on the rise, with investors from the Middle East, Japan, the European Union, and the United States increasingly recognising the country as a prime investment hub. This surge is fuelling rapid economic growth and creating millions of new jobs, according to Commerce and Industry Minister Piyush Goyal. 

Goyal emphasised that India offers numerous advantages, including a robust domestic market, a skilled workforce, and a strong rule of law, all of which are drawing global investors.  

“I foresee FDI in India growing rapidly once again, leading to millions of new jobs. Investors from the Middle East, the EFTA region, Japan, the EU, and the US are all realising that India remains the most preferred destination for FDI,” he told PTI. 

He also highlighted that India’s stable regulatory environment, combined with business-friendly policies and efforts to improve ease of doing business, are attracting an increasing number of investors worldwide.

“Just last month, I met the CEO of one of the largest US-based funds, who is also the biggest investor in India. He told me that their investments in India over the past decade have been among the best they’ve ever made,” Goyal told PTI. 

The US-based fund has been investing in India for over 20 years, with more than 80 percent of their investments occurring in recent years. “The CEO mentioned that they plan to visit India to celebrate their 20th anniversary of investing in the country, and will announce a new round of investments,” Goyal added. 

The performance of India’s stock market is also expected to draw more Foreign Institutional Investors (FIIs), the minister stated. 

India has been averaging over $4.5 billion in monthly FDI inflows since January, despite global challenges. Between January and September of this year, FDI grew by about 42 percent, reaching $42.13 billion, compared to $29.73 billion during the same period last year. 

During the first half of the 2024-25 fiscal year (April to September), FDI rose by 45 percent to $29.79 billion, compared to $20.48 billion in the same period of the previous fiscal year. In total, FDI for 2023-24 stood at a healthy $71.28 billion. 

Key sectors attracting the most FDI include services, computer software and hardware, telecommunications, trading, construction development, automobiles, chemicals and pharmaceuticals. 

Most sectors in India allow FDI through the automatic route, though government approval is required in areas such as telecommunications, media, pharmaceuticals and insurance. 

These FDI inflows are crucial for India, as the country will need significant investments to support its infrastructure development and sustain growth. Moreover, strong foreign inflows contribute to maintaining the balance of payments and supporting the value of the rupee.