Total foreign direct investment (FDI) inflow reported during the first half of FY 2025-26 ($50.36 billion) has increased by 16 per cent compared to year-ago period ($43.37 billion) — highest ever for first half of a financial year, the Parliament was informed on Tuesday.
Gross FDI inflows have increased from over $34 billion in 2012-13 to over $80 billion in 2024-25, said Minister of State for Commerce and Industry, Jitin Prasada, in Lok Sabha.
As per official data, India recorded a strong rebound in FDI in the second quarter of the current financial year, with total inflows rising over 18 per cent year-on-year to $35.18 billion during April–September 2025.
“The recent trend in net FDI inflows is associated with increased repatriation/disinvestment and rising Overseas Direct Investment (ODI) outflows. The ODI outflow on account of liberalized ODI rules notified in 2022 is helping Indian entities to enhance their business footprints abroad enabling them to compete in the global market, adding to the strength of Indian economy in long run,” informed Prasada.
The increasing trend of repatriation indicates that India is not only attracting foreign capital but also delivering strong returns, which enhances its reputation as a reliable investment destination, he added.
The government has leveraged the free trade agreements for promotion of Export Diversification and attract investment. India has signed 15 free trade agreements (FTAs) and 6 preferential trade agreements (PTAs) with its trading partners.
“Trade and Economic Partnership Agreement between India and the European Free Trade Association (EFTA), signed on March 10, 2024, is a modern and forward-looking agreement. For the first time in history of Free Trade Agreements, unilateral binding commitment of $100 billion investment and 1 million direct jobs over the next 15 years has been secured from Switzerland, Norway, Liechtenstein and Iceland,” Prasada noted.
The Government is working closely with stakeholders to help exporters fully leverage India’s FTAs with Japan, Korea and the UAE, while tapping new opportunities from recently concluded agreements with the EFTA nations and the UK. It is also fast-tracking negotiations for balanced FTAs with the EU, Peru, Chile, New Zealand and Oman. In parallel, the Government is actively engaging exporters, EPCs, industry bodies and states to assess and address the impact of recent U.S. tariff measures, he added.
(IANS)