India evaluates impact of US tariffs
The Department of Commerce is carefully examining the implications of various measures and announcements made by US President Donald Trump regarding reciprocal tariffs, the Ministry of Commerce stated.
Foreign Direct Investment (FDI) inflows have steadily increased from USD 36.05 billion in FY 2013–14 to a provisional USD 81.04 billion in FY 2024–25, marking a 14% rise from USD 71.28 billion in FY 2023–24.
According to the Ministry of Commerce and Industry, the services sector emerged as the top recipient of FDI equity in FY 2024–25, attracting 19% of the total inflows. This was followed by computer software and hardware (16%) and trading (8%).
FDI into the services sector rose by 40.77%, reaching USD 9.35 billion compared to USD 6.64 billion in the previous fiscal.
The data also highlighted India’s growing role as a hub for manufacturing FDI, which saw an 18% increase in FY 2024–25, reaching USD 19.04 billion, up from USD 16.12 billion in FY 2023–24.
Providing a state-wise analysis, the Ministry reported that Maharashtra accounted for the highest share (39%) of total FDI equity inflows in FY 2024–25, followed by Karnataka (13%) and Delhi (12%).
Among source countries, Singapore led with a 30% share, followed by Mauritius (17%) and the United States (11%).
The number of source countries for FDI rose from 89 in FY 2013–14 to 112 in FY 2024–25, underscoring India’s growing global appeal as an investment destination.
Over the past eleven financial years (2014–25), India attracted FDI worth USD 748.78 billion, reflecting a 143% increase over the preceding eleven years (2003–14), which saw inflows of USD 308.38 billion. This accounts for nearly 70% of the total USD 1,072.36 billion received over the past 25 years.
Highlighting the Centre’s proactive approach to boosting FDI, the Ministry noted that between 2014 and 2019, significant reforms were undertaken.
These included raising FDI caps in the Defence, Insurance, and Pension sectors, and liberalizing policies in Construction, Civil Aviation, and Single Brand Retail Trading.
Between 2019 and 2024, key initiatives included permitting 100% FDI under the automatic route in coal mining, contract manufacturing, and insurance intermediaries.
In 2025, the Union Budget proposed increasing the FDI limit from 74% to 100 per cent for companies investing their entire premium within India.
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