How will the year 2025 be for FDI in India, know what the experts predict

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FDI: Despite the ongoing uncertainties and challenges around the world, the flow of foreign direct investment (FDI) in India has been excellent this year. The average monthly FDI has been more than $ 4.5 billion since January this year. This trend is expected to continue in 2025 as well due to the efforts of the NDA government led by Prime Minister Narendra Modi to create a better environment for investors in the country. Better policies for investors, strong ‘returns’ on investment, tremendous workforce, low compliance burden, removal of crimes related to small industries, national single window system for approval and PLI schemes are among the major measures to attract foreign investors to invest in India.

FDI flow increased by 42 percent in the first 9 months

In addition, to ensure that India remains an attractive and investor-friendly destination, the government reviews the FDI policy on a regular basis. The government makes changes in it from time to time after extensive consultation with all stakeholders, including top industry associations and industry representatives. FDI inflows into the country grew by nearly 42 per cent to $42.13 billion during the January-September period this year. FDI inflows stood at $29.73 billion during the same period a year ago. FDI inflows grew by 45 per cent to US$29.79 billion in April-September 2024-25 as against US$20.48 billion in the same period of the previous fiscal. Total FDI in 2023-24 stood at US$71.28 billion

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The series will continue in 2025 as well

“Looking at the trend, the country will continue to attract good FDI in 2025 as well,” said Amardeep Singh Bhatia, Secretary, Department for Promotion of Industry and Internal Trade (DPIIT). He said India is continuing to open up its economy to global investors by increasing foreign investment limits, removing regulatory issues, improving infrastructure and business environment. India has received 67 per cent (US$ 667 billion) of the total FDI inflows of US$ 991 billion during the last 10 years (2014-2024).

India is a favorite investment destination for global companies

The manufacturing sector witnessed a 69 per cent jump in FDI equity inflows from US$ 98 billion in 2004-2014 to US$ 165 billion in 2014-2024. Sharing similar views, experts said that despite all the global challenges, India is still a preferred investment destination for global companies.