India has achieved a major economic milestone, with total foreign direct investment (FDI) inflows surpassing $1 trillion since April 2000. During the first half of FY25, FDI inflows rose by nearly 26%, reaching $42.1 billion. This sharp increase underscores India’s rising status as a global investment hotspot, driven by business-friendly reforms, a thriving economy, and competitive advantages.
Key initiatives like the “Make in India” campaign, the Goods and Services Tax (GST), and relaxed regulations for various sectors have significantly boosted investor confidence. Between April 2014 and September 2024, India attracted $709.84 billion in FDI, making up 68.69% of total investments received since 2000. This trend highlights India’s pivotal role in the global economy.
India’s improvements in global rankings further bolster its investment appeal. The nation advanced to 40th place in the World Competitive Index 2024, up from 43rd in 2021. Similarly, in the Global Innovation Index 2023, India ranked 40th out of 132 countries. Notably, India secured the third spot for greenfield projects and experienced a 64% rise in international project financing deals.
Reforms introduced by the government have played a critical role in attracting investors. Measures such as permitting 100% FDI in numerous sectors and amendments to the Income Tax Act 2024, which reduced taxes and eliminated the angel tax, have enhanced India’s investment climate. Together, these factors position India as a dynamic and promising destination for global investors, setting the stage for sustained economic progress.
