According to India’s Ministry of Commerce and Industry, the country attracted a cumulative Foreign Direct Investment (FDI) inflow of $667.4 billion between 2014 and 2024. This marks an impressive 119% increase compared to the $304 billion received during the preceding decade from 2004 to 2014.
Contrary to common assumption that most of India’s FDI comes from global economic powerhouses like the United States, Japan, the UK, or Russia, a small African nation has emerged as the largest contributor to India’s FDI over the past 24 years. This country has accounted for 25% of India’s total FDI inflows during this period. Let’s take a look into the details of this surprising revelation.
India’s total FDI inflows crossed the $1 trillion mark between April 2000 and September 2024, highlighting the nation’s growing reputation as a secure and attractive investment destination on the global stage.
As per the Department for Promotion of Industry and Internal Trade (DPIIT), the cumulative FDI, including equity, reinvested earnings, and other capital inflows, amounted to $1,033.40 billion during this period. This milestone underscores India’s evolution as a key global investment hub.
Surprisingly, Mauritius has been the largest source of FDI to India, contributing 25% of the total inflows. It is followed closely by Singapore at 24%, the United States at 10%, the Netherlands at 7%, Japan at 6%, the UK at 5%, and the UAE at 3%. Other notable contributors include the Cayman Islands, Germany, and Cyprus.
From April 2000 to September 2024, India received $177.18 billion from Mauritius, $167.47 billion from Singapore, and $67.8 billion from the United States. The majority of these investments have been directed towards sectors such as, services, computer Software and Hardware, Telecommunications, Trading, Construction Development, Automobiles, Chemicals and Pharmaceuticals.
The Ministry of Commerce and Industry reported that between 2014 and 2024, India recorded an FDI inflow of $667.4 billion, a 119% rise compared to the $304 billion received during 2004–2014.
A notable surge was observed in the manufacturing sector, with FDI equity inflows reaching $165.1 billion during 2014–2024, reflecting a 69% increase from the previous decade.
Mauritius’s dominance in FDI contributions can be attributed to the India-Mauritius Double Taxation Avoidance Agreement (DTAA). This treaty has historically provided tax advantages to investors routing investments through Mauritius, making it an attractive channel for global investors targeting India.
India’s ability to attract over $1 trillion in FDI in 24 years reflects its emergence as a global investment destination. While Mauritius leads in FDI contributions, the inflows from other countries like Singapore and the US underscore the confidence global investors have in India’s growth story.
