In a remarkable sign of growing investor confidence and India’s expanding global footprint, the number of countries investing in India through Foreign Direct Investment (FDI) has surged from 89 in 2013–14 to 112 in 2024–25.
This expansion highlights India’s rising status as a preferred global investment hub, reflecting the country’s consistent economic reforms, policy stability, and a proactive approach to ease of doing business.
Growing Global Interest
Over the last decade, India has attracted a broad spectrum of foreign investors across diverse sectors—from manufacturing and technology to retail and financial services. The increase in source countries not only signals a widening of India’s diplomatic and economic outreach but also reduces reliance on a handful of traditional investment partners.
This diversification is a strategic advantage, helping to cushion India against potential economic shocks in specific regions and ensuring a more balanced and sustainable flow of capital.
Policy Reforms Driving Growth
India’s liberalised FDI policies and sectoral reforms have been instrumental in opening doors to new investors. The government has made significant changes, including increasing FDI caps in sectors like insurance, defence, and telecom, and simplifying the approval process for investments under the automatic route.
Additionally, programs like ‘Make in India’ and the Production Linked Incentive (PLI) schemes have made the country an attractive destination for companies seeking to establish manufacturing bases and tap into India’s large and growing consumer market.
Boost to Economic Development
With more countries participating in India’s economic growth story, the country is seeing greater competition, innovation, and employment generation. The inflows contribute significantly to infrastructure development, technology transfers, and the creation of a skilled workforce.
This trend also supports India’s long-term vision of becoming a $5 trillion economy and achieving sustainable, inclusive growth across states and sectors.