Page 17 - CII-ARTHA

MARCH 2026

Figure 2: India's Gross FDI Inflows (US$ billion)

100.0 82.0 84.8
74.4 71.4 71.0 81.0 73.3
75.0 55.6 60.2 61.0 62.0

41.9 46.6 45.1
50.0 34.8 37.7 34.8 34.3 36.0
22.8
25.0
6.1 9.7

-
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26*

*Till December 2025

Source: RBI-DBIE Database

This sustained increase in inflows is widely attributed to Between 2019 and 2024, 100 per cent FDI under the
proactive policy reforms, including a continued focus on automatic route was permitted in coal mining and
ease of doing business, the implementation of GST, and contract manufacturing. The policy reform has continued
progressive FDI liberalisation. Since 2014, reforms have as the Union Budget 2025 further proposed 100 per cent
increased FDI caps in sectors such as defence, insurance, FDI in insurance, subject to domestic premium
and pensions, alongside liberalisation in construction, civil investment.
aviation, and single-brand retail.

Jan 2000-Sep 2014 Oct 2014-Mar 2025
Select Sectors Value Share Value Share
(USD mn) (%) (USD mn) (%)
Services Sector (Financial, Banking, Insurance, Non-Financial, 40,706 17.5% 78,142 15.7%
Outsourcing, R&D, Courier, Tech. Testing, etc.)

Construction Development: Townships, Housing, Built-Up 23,874 10.3% 3,253 0.7%
Infrastructure, Construction Development Projects

Construction (Infrastructure) Activities 2,698 1.2% 33,461 6.7%

Air Transport (Including Air Freight) 537 0.2% 4,671 0.9%

Defence Industries 5 0.002% 17 0.003%

Retail Trading (Single Brand) 159 0.1% 4,565 0.9%

Coal Production 28 0.01% - -

Source: FDI Newsletter, DPIIT, Government of India [Share in FDI Inflows]

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