- The US is the largest source of FDI in India, followed by Mauritius, Singapore, and the UK.
- Total FDI surged by 23.3% in market value during the 2023-24 fiscal year.
- Over 75% of inward direct investment comes from foreign company subsidiaries.
The Reserve Bank of India’s latest census shows the United States continues to be the largest source of Foreign Direct Investment (FDI) in India, with significant contributions from Mauritius, Singapore, and the United Kingdom.
Total FDI in India grew by 23.3% in market value during the fiscal year 2023-24, reflecting both valuation gains and fresh inflows.
RBI Census Highlights Growth in India’s FDI Landscape
The latest RBI census underscores the growing importance of the United States as the leading source of Foreign Direct Investment (FDI) in India, reflecting a strong economic partnership. With Mauritius, Singapore, and the United Kingdom trailing behind, this trend indicates India’s increasing appeal as an investment destination. Of the entities surveyed, a significant proportion—over 75%—were subsidiaries of foreign companies, demonstrating the vital role these entities play in the Indian economy.
In terms of market performance, total FDI surged by an impressive 23.3% in rupee terms during the fiscal year 2023-24. This robust growth was supported by both new inflows and valuation gains, showcasing the resilience and attractiveness of the Indian market. Notably, non-financial companies accounted for nearly 90% of the reported FDI equity, highlighting the dominance of this sector in attracting foreign capital.
The census also revealed that unlisted entities experienced a growth rate of 17.5% in FDI, while listed entities outperformed with a growth rate of 29.8%. This disparity emphasizes the dynamic nature of investment opportunities available in the Indian market. As outward direct investment growth lagged behind inward FDI, the ratio of outward to inward DI stock declined to 16.1%, further illustrating the favorable investment climate in India.
Additionally, foreign subsidiaries in India maintained strong external trade linkages, with exports and imports comprising significant portions of their sales and purchases. During the fiscal year, total sales and purchases of these subsidiaries increased by 13.2% and 10.6%, respectively. This connectivity not only bolsters India’s trade figures but also strengthens the economic fabric by integrating foreign businesses into the local market.
The RBI census reveals a promising trajectory for FDI in India, driven largely by US investment and a robust non-financial sector, indicating a bright future for economic growth.
“The true measure of our investment landscape lies not just in numbers but in the partnerships and growth we nurture.”
