SUMMARY
In the first half of FY 2024-25, the nation witnessed a nearly 26% surge in FDI, reaching $42.1 billion, showcasing investor confidence driven by the nation’s economic reforms and a robust business environment.

India has crossed a monumental milestone with foreign direct investment (FDI) inflows touching $1 trillion since April 2000, reflecting the nation’s growing appeal as a preferred global investment destination. In the first half of FY 2024-25, the nation witnessed a nearly 26% surge in FDI, reaching $42.1 billion, showcasing investor confidence driven by the nation’s economic reforms and a robust business environment.

The government’s flagship initiative, “Make in India,” alongside liberalized sectoral policies, has played a significant role in boosting investor confidence, drawing multinational corporations to invest in the country’s manufacturing sector.

India’s ranking in the 2024 World Competitive Index rose to 40th, up from 43rd in 2021. The country also improved its position in the Global Innovation Index, moving from 81st in 2015 to 40th in 2023, showcasing progress in innovation and competitiveness.

The nation ranked as the third-largest recipient of greenfield projects globally, with 1,008 new project announcements in 2023. India also saw a 64% increase in international project finance deals, reflecting its growing prominence in global investment.

India significantly improved its business environment, climbing from 142nd in 2014 to 63rd in the World Bank’s Doing Business Report 2020. This 79-rank leap highlights the government’s successful efforts to simplify regulations and foster a more investor-friendly climate.

The Indian government’s investor-friendly policies, including the abolition of angel tax and the simplification of tax compliance, are part of a wider effort to make the country more attractive to foreign investors and startups.