Parliament Question: Foreign Direct Investment

GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE LOK SABHA UNSTARRED QUESTION NO. 2696. TO BE ANSWERED ON TUESDAY, THE 04TH AUGUST, 2026. FOREIGN DIRECT INVESTMENT 2696. SHRI AZAD KIRTI JHA: Will the Minister of COMMERCE AND INDUSTRY be pleased to state: वाणिज्य एवं उद्योग मंत्री (a) the gross and net Foreign Direct Investment (FDI) flows into India during the last three financial years (2022-23, 2023-24 and 2024-25), year-wise and sector-wise and if so, the details thereof; (b) the reasons identified by the Government for the sharp fall in net FDI inflow in FY 2024-25; (c) whether the Government has assessed the impact of large-scale repatriation of profits and outward investments by Indian companies on net FDI flows, if so, the action is being taken by the Government to enhance net capital retention; and (d) the steps being taken or proposed to be taken by the Government to strengthen investor confidence, curb capital flight, align outward investment policy and convert rising gross FDI into sustained net investment for India’s growth? ANSWER वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री (श्री णिणिन प्रसाद) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI JITIN PRASADA) (a): The Foreign Direct Investment (FDI) to India and Net FDI into India during financial years 2022-23, 2023-24 and 2024-25, as per information obtained from RBI, are as under: Table A. FDI to India (Amount in USD Billion) Sr. Financial Year Gross Repatriation/Disinvestment FDI to India No. Inflows (a) (b) (c) (d) = (b) – (c) 1 2022-23 71.4 29.4 42.0 2 2023-24 71.3 44.5 26.8 3 2024-25 80.6 51.5 29.1Table B. Net FDI Sr. No. Financial Year FDI to India FDI by India Net FDI (a) (b) (c) (d) = (b) – (c) 1 2022-23 42.0 14.0 28.0 2 2023-24 26.8 16.7 10.2 3 2024-25 29.1 28.2 1.0 The FDI into India as given in Table A above is netted after subtracting repatriations and disinvestments from Gross FDI inflow, which includes equity inflow, re-invested earnings and other capital. The Net FDI figure, as indicated in Table B, is calculated by subtracting FDI by India i.e. Overseas Direct Investment (ODI) by Indian entities from the figure of FDI to India as calculated in Table A. Sector-wise details are maintained only for equity component of FDI inflow. The details of year-wise and sector-wise FDI reported through equity inflows during the financial years 2022-23, 2023-24 and 2024-25 is at Annexure. (b) to (d): Gross FDI inflows have increased from over USD 34 billion in 2012-13 to over USD 94.84 billion in 2025-26. The 2025-26 gross inflows represent a 17 % increase compared to 2024-25 (USD 80.62 billion). It is the highest ever FDI inflow reported in the FY. The recent trend in net FDI inflows is associated with increased FDI by India as well as greater repatriation. The increase in ODI outflow underscores the growing global aspirations and capabilities of Indian enterprises as they venture abroad to acquire strategic assets, access new markets and tap into advanced technologies. The repatriations/ disinvestments indicate a maturing investment ecosystem where foreign investors are monetising investments after successfully scaling up Indian enterprises, transfer of ownership to domestic investors reflecting strengthening of domestic capital and entrepreneurial capacity. The Government has taken various steps/initiatives for promotion and facilitation of industries such as Make in India, Ease of Doing Business, Startup India, Production Linked Incentives (PLI) Schemes for various sectors, Focus Sub Sectors, Phased Manufacturing Programme (PMP), One District One Product (ODOP), Industrial Information System (IIS) which provides GIS- enabled database of industrial areas including clusters, parks, nodes, zones etc., and a comprehensive Single Window System (Investment Clearance Cell). To promote FDI, the Government has put in place an investor friendly policy, wherein most sectors, except certain strategically important sectors, are open for 100% FDI under the automatic route. More than 90% of the FDI inflow is received under the automatic route. National Single Window System (NSWS) has also been launched as the online single point interface of the Government of India for investors to start any industry in India and take requisite permissions. FDI policy provisions have been progressively liberalised and simplified across various sectors such as Pension, Other Financial Services, Asset reconstruction Companies, Broadcasting, Pharmaceuticals, Single Brand Retail Trading, Construction & Development, Power Exchanges, e-commerce activities, Coal Mining, Contract Manufacturing, Digital Media, Civil Aviation etc. In the recent past, reforms in the FDI Policy have been undertaken in sectors such as Defence, Insurance, Petroleum & Natural Gas, Telecom and Space.To complement the reforms, efforts have been undertaken to ensure a seamless business regulatory framework across the country and nudge states to promote healthy competition to attract investments. The Government of India released Business Reforms Action Plan (BRAP) 2024 rankings and Logistics Ease Across Different States (LEADS) 2024 report to inter-alia communicate to potential investors examples of positive business ecosystem as well as logistics performance undertaken by various States and UTs. Under the Regulatory Compliance Burden (RCB) excercise, 47,865 compliances reduced since 2020 out of which 16,136 simplified, 22,289 digitised, 5,170 decriminalised, 4,270 redundancies removed. Through the Jan Vishwas (Amendment of Provisions) Act, 2023, the Government has decriminalised 183 provisions across 42 Central Acts from 19 Ministries/Departments. Building upon the Jan Vishwas Act, 2023, the Government undertook a comprehensive review of central laws and introduced the Jan Vishwas (Amendment of Provisions) Act, 2026, which amends 784 provisions across 79 Central Acts administered by 23 Ministries. Of these, 717 provisions have been decriminalized to promote Ease of Doing Business, while 67 provisions have been amended to facilitate Ease of Living. Furthermore, to ensure that India remains an attractive and investor friendly destination, the Government reviews FDI policy on an ongoing basis and makes changes from time to time. *******ANNEXURE ANNEXURE REFERRED TO IN REPLY TO PART (a) OF THE LOK SABHA UNSTARRED QUESTION NO. 2696 FOR ANSWER ON 04.08.2026 Sector wise and Financial Year wise FDI equity inflow from April 2022 to March 2025. (Amount in USD million) Sr. Sector 2022-23 2023-24 2024-25 Cumulative No. FDI 1 Computer Software & 9,394.22 7,972.79 7,813.69 25,180.70 Hardware Services Sector (Fin., 8,706.93 6,640.24 9,347.25 24,694.42 Banking, Insurance, Non 2 Fin/Business, Outsourcing, R&D, Courier, Tech. Testing And Analysis, Other) 3 Trading 4,792.28 3,864.88 4,175.54 12,832.71 4 Non-Conventional Energy 2,499.99 3,764.06 4,011.86 10,275.91 Construction 5 1,703.40 4,232.16 2,244.55 8,180.11 (Infrastructure) Activities 6 Automobile Industry 1,902.21 1,524.22 1,586.31 5,012.73 7 Drugs & Pharmaceuticals 2,058.42 1,064.22 891.43 4,014.07 8 Hospital & Diagnostic 809.60 1,530.06 1,558.83 3,898.49 Centres 9 Power 697.92 1,701.50 1,428.57 3,827.99 Chemicals (Other Than 10 1,850.01 843.97 1,060.56 3,754.53 Fertilizers) 11 Electronics 539.98 695.74 2,043.04 3,278.77 12 Electrical Equipments 909.11 1,049.37 531.49 2,489.96 13 Cement And Gypsum 1.89 613.44 1,812.56 2,427.89 Products 14 Consultancy Services 605.43 734.65 1,061.03 2,401.12 15 Education 1,443.24 344.01 468.24 2,255.48 16 Hotel & Tourism 328.04 511.10 1,307.48 2,146.61 17 Food Processing 895.84 608.31 540.76 2,044.91 Industries Information & Broadcasting 18 465.61 852.91 712.63 2,031.14 (Including Print Media) 19 Telecommunications 712.95 281.66 746.20 1,740.82 20 Sea Transport 529.80 1,095.81 65.74 1,691.35 Air Transport (Including Air 21 215.73 97.38 1,349.25 1,662.35 Freight) Medical And Surgical 22 397.20 482.83 626.99 1,507.03 Appliances 23 Metallurgical Industries 218.59 286.21 950.99 1,455.79 24 Miscellaneous Industries 409.94 462.25 539.55 1,411.75 25 Industrial Machinery 260.88 406.52 509.65 1,177.05 26 Construction Development: 146.62 254.65 528.55 929.83 Townships, Housing, Built Up Infrastructure And Construction-Development Projects 27 Retail Trading 506.71 165.51 204.76 876.97 28 Agricultural Machinery 742.06 2.22 17.08 761.35 Textiles (Including Dyed, 29 154.72 309.72 254.77 719.21 Printed) 30 Fermentation Industries 307.22 107.00 191.79 606.02 Prime Mover (Other Than 31 115.26 279.00 204.54 598.79 Electrical Generators)32 Agriculture Services 450.70 57.23 41.01 548.95 Miscellaneous Mechanical 33 103.58 284.37 153.68 541.63 & Engineering Industries Printing Of Books 34 76.37 209.02 108.22 393.60 (Including Litho Printing Industry) 35 Rubber Goods 160.17 135.35 81.50 377.02 Soaps, Cosmetics & Toilet 36 111.57 75.16 92.50 279.24 Preparations 37 Machine Tools 42.95 135.43 81.66 260.04 38 Mining 167.15 72.58 8.11 247.84 39 Scientific Instruments 70.33 70.54 85.53 226.40 40 Diamond, Gold Ornaments 25.50 37.97 157.70 221.18 41 Railway Related 2.83 177.18 20.54 200.54 Components 42 Petroleum & Natural Gas 107.55 32.58 28.07 168.20 43 Ceramics 83.24 35.25 35.49 153.98 44 Vegetable Oils And 15.74 59.35 62.21 137.30 Vanaspati 45 Earth-Moving Machinery 33.20 22.62 69.37 125.18 Leather, Leather Goods 46 33.11 49.06 42.08 124.25 And Pickers Tea And Coffee 47 71.22 10.28 38.84 120.34 (Processing & Warehousing Coffee & Rubber) Paper And Pulp (Including 48 27.23 55.46 30.22 112.91 Paper Products) 49 Glass 58.07 18.05 23.66 99.78 50 Glue And Gelatin 9.60 72.07 17.32 98.98 51 Timber Products 22.24 8.89 30.59 61.71 Commercial, Office & 52 20.07 10.58 9.03 39.68 Household Equipments 53 Fertilizers 9.34 9.07 8.81 27.22 54 Sugar 6.05 1.65 2.13 9.84 55 Defence Industries 3.27 4.09 1.87 9.23 56 Dye-Stuffs 1.15 1.10 0.50 2.75 Boilers And Steam 57 - 0.06 1.19 1.25 Generating Plants 58 Industrial Instruments - - 0.42 0.42 Total: 46,034.05 44,423.35 50,017.90 140,475.31 **********