Non-Renewable energy sector plummeted by 81% year-on-year to US$32.57 million in 2023-24.
Global cross-border investment announcements totaled US$635 billion in the first half of 2024.
India is on the trajectory of becoming the most-prefered-nation for investments with a democratic government, a legal system and framework inherited from the colonial Bristish era, and the highest global population of 1.43bil, surpassing China in April 2023.
India’s FDI growth in Q1 2024-25 highlights the country’s increasing economic prominence on the global stage with an astonishing 26.4% increase, bringing in a total of US$22.4 billion. This notable growth signifies a robust beginning to the fiscal year and underscores the rising global confidence in the Indian economy.
India has significantly contributed to this trend, establishing itself as a favored destination for foreign investments due to its stable economic policies and growing market potential.
Equity investments experienced an impressive 46% growth in Q1 2024, with US$4.2 billion directed towards share acquisitions. This surge highlights the growing confidence of foreign investors in both the Indian stock market and the broader economy.
Overview of India’s FDI Growth
During the first quarter of the 2024-25 fiscal year, India experienced a remarkable surge in FDI inflows. Key sectors like manufacturing, financial services, communication, and energy attracted significant foreign capital. The net FDI reached US$6.9 billion, marking a substantial increase from US$4.7 billion in the same period the previous year, reflecting a robust 46% growth.
Sectors Most Invested
Strategic sectors such as manufacturing, financial services, and renewable energy have attracted substantial investments, positioning India as a burgeoning global investment hub. However, to ensure balanced growth, it is crucial to address the challenges posed by the declining interest in the non-renewable energy sector.
Global cross-border investment announcements totaled US$635 billion in the first half of 2024.
Despite the positive overall trend, certain challenges remain. The significant drop in non-renewable energy investments underscores the necessity for diversification and adaptation within India’s energy sector.
Additionally, while sectors such as manufacturing and financial services are thriving, other areas may require more targeted policies to attract foreign capital.
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