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India Likely To Maintain Strong FDI Inflows In 2025, Says DPIIT Secretary

  • India is expected to continue attractive FDI inflows in 2025 as the government is taking measures to improve its investor-friendly appeal, according to Amardeep Singh Bhatia, Department for Promotion of Industry and Internal Trade (DPIIT) secretary.
  • India has been averaging over $4.5bn in monthly foreign direct investment inflows since January this year despite global uncertainties and challenges.
  • In the January-September 2024 period, FDI into the country grew by 42% to $42.13 billion, compared with $29.73bn in the same period that year.
  • Bhatia said India is opening up its economy to global investors by raising foreign investment limits, removing regulatory barriers, developing infrastructure and improving the business environment.
  • A total FDI inflow of $991bn was recorded, with $667bn received during the last ten financial years (2014-2024).
  • FDI equity inflow in the manufacturing sector increased by 69%, with $165bn recorded in 2014-2024, compared with $98bn in 2004-2014.
  • Streamlining regulatory processes, minimising bureaucratic hurdles and infrastructure development, particularly in logistics and digital connectivity will further boost investor confidence and simplify the investment landscape.
  • FDI policy is reviewed regularly to ensure that India remains attractive and investor-friendly.
  • Liberalising sectoral caps in pharmaceuticals, private security agencies, broadcasting and plantations and easing norms under the press note 3 are among suggestions to further improve India's ease of doing business.
  • Foreign direct investment inflows into India crossed the $1tn milestone in April 2000-September 2024, firmly establishing the country's reputation as a safe and key investment destination globally.

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