**Executive Summary**
This document is an answer provided in Lok Sabha on February 10, 2026, by the Minister of State in the Ministry of Commerce & Industry, in response to Unstarred Question No. 1648. The question relates to India's rise in global Foreign Direct Investment (FDI) rankings as reported in the UNCTAD World Investment Report 2025, and its seeks details on key factors, sectors, and states contributing to this rise. Annexure-I and Annexure-II provide the details of Sectors and States that have attracted FDI growth in Financial Year 2024-25 compared to Financial Year 2023-24 respectively.
**Key Points / Main Content**
* **FDI Ranking Improvement:** India moved up to 15th position among global FDI recipients in 2024, from 16th in 2023, as per UNCTAD's World Investment Report 2025.
* **Government's Role and Policies:**
* Ongoing review and changes to FDI policies to maintain India as an attractive investment destination.
* Significant reforms between 2014-2019 included increased FDI caps in Defence, Insurance, and Pension sectors.
* Liberalized policies for Construction, Civil Aviation, and Single Brand Retail Trading.
* From 2019-2024, notable measures included allowing 100% FDI under the automatic route in coal mining, contract manufacturing, and insurance intermediaries.
* Efforts to attract FDI by removing regulatory barriers, streamlining processes, developing infrastructure, and enhancing the Ease of Doing Business (EoDB).
* The Regulatory Compliance Burden (RCB) initiative resulted in over 42,000 compliance reductions under 670 acts nationwide.
* Through the Jan Vishwas (Amendment of Provisions) Act, 2023, the Government has decriminalized 183 provisions across 42 Central Acts from 19 Ministries/Departments.
* **Initiatives and Reforms:**
* Implementation of policy interventions like Make in India, Start-up India, PM GatiShakti, National Industrial Corridor Programme, PLI schemes, Indian Footwear and Leather Development Programme, National Single Window System (NSWS), India Industrial Land Bank and Project Monitoring Group (PMG).
* Amendment to the Income Tax Act, 1961 in 2024 to abolish angel tax and reduce income tax rates for foreign companies.
* GST reforms introduced in September 2025 to streamline tax structures and reduce rates, prioritizing sectors with high youth participation like education, automobiles, technology, handicrafts, footwear, healthcare, food processing, and textiles.
* Simplified GST structure with reduced rates across sectors like leather, footwear, paper, textiles, handicrafts, toys, packaging, and logistics.
* Lowering GST slabs to 5% on several goods and rationalizing rates in transport and allied sectors.
* **Sectors and States Attracting FDI:** Details of sectors and states attracting FDI growth in Financial Year 2024-25 compared to Financial Year 2023-24 are provided in Annexure-I and Annexure-II.
**Impact Analysis**
**Potential Investors:**
* **Impact:** Positive. The government is actively communicating examples of a positive business ecosystem and logistics performance to potential investors. The BRAP and LEADS reports help inform their investment decisions.
* **Action Required:** Review BRAP and LEADS reports to assess investment opportunities based on state rankings and logistics performance.
**Businesses (Domestic & Foreign):**
* **Impact:** Positive. Simplified GST, reduced tax rates, reduced compliance burden, decriminalization of certain provisions, and various government schemes create a more conducive business environment.
* **Action Required:** Leverage available government schemes, adapt to the new GST structure, and ensure compliance with amended regulations.
**Consumers:**
* **Impact:** Positive. Reduced GST slabs and rationalized rates in transport and allied sectors are expected to reduce costs for consumers.
* **Action Required:** Be aware of the updated pricing and taxation policies, and take advantage of the cost reductions.
**Youth:**
* **Impact:** Positive. Reforms and initiatives prioritize sectors with high youth participation, promote entrepreneurship, and aim to improve job creation.
* **Action Required:** Take advantage of the opportunities created in priority sectors through skills development and entrepreneurship ventures.
**State Governments:**
* **Impact:** Encouraged growth of FDI equity inflow, enhancing economic development.
* **Action Required:** Continue improving the factors that attract FDI in their state, especially logistics and ease of doing business.
Key Entities Referenced
Ministry of Commerce & Industry: The primary ministry responsible for policies related to industry and internal trade, including attracting Foreign Direct Investment (FDI).
UNCTAD World Investment Report: A key report used by the Government of India to benchmark its FDI performance.
Foreign Direct Investment (FDI): The main subject of the document, referring to investments made by foreign entities in India.
Business Reforms Action Plan (BRAP): A Government of India initiative aimed at improving the business environment and attracting FDI through reforms.
Jan Vishwas (Amendment of Provisions) Act, 2023: An act aimed at decriminalizing minor offenses in various laws to reduce compliance burden.
GOVERNMENT OF INDIA
MINISTRY OF COMMERCE & INDUSTRY
DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE
LOK SABHA
UNSTARRED QUESTION NO. 1648.
TO BE ANSWERED ON TUESDAY, THE 10TH FEBRUARY, 2026.
INDIA’S RISE IN GLOBAL FDI RANKINGS
1648. SHRI BAIJAYANT PANDA:
Will the Minister of COMMERCE AND INDUSTRY be pleased to state:
वाणिज्य एवं उद्योग मंत्री
(a) whether the Government has identified the key factors that have contributed to
India’s rise in the global FDI rankings as reported in the United Nations
Conference on Trade and Development (UNCTAD) World Investment Report
2025;
(b) if so, the details thereof; and
(c) the details of sectors and States that have attracted the highest FDI 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) & (b): As per United Nations Conference on Trade and Development's(UNCTAD)
World Investment Report 2025, India moved up to 15th position among global
Foreign Direct Investment (FDI) recipients in 2024 from 16th position in 2023.
The Government reviews the FDI policies on an ongoing basis and makes
changes from time to time to ensure that India remains an attractive & investor-
friendly destination. Between 2014 and 2019, significant reforms included
increased FDI caps in Defence, Insurance, and Pension sectors, and liberalized
policies for Construction, Civil Aviation, and Single Brand Retail Trading. From
2019 to 2024, notable measures included allowing 100% FDI under the
automatic route in coal mining, contract manufacturing, and insurance
intermediaries.
The Government of India always strives to attract larger FDI by removing
regulatory barriers, streamlining processes, developing infrastructure, bettering
logistics and improving the business environment by enhancing the Ease of
Doing Business (EoDB).
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. The Regulatory Compliance Burden (RCB) initiative has resulted in over
42,000 compliance reductions, under 670 acts nationwide. Through the Jan
Vishwas (Amendment of Provisions) Act, 2023, the Government has
decriminalised 183 provisions across 42 Central Acts from 19
Ministries/Departments.The Government also provides an enabling environment for industrial
development through policy interventions and initiatives such as Make in India,
Start-up India, PM GatiShakti, National Industrial Corridor Programme, PLI
schemes, Indian Footwear and Leather Development Programme, National
Single Window System (NSWS), India Industrial Land Bank and Project
Monitoring Group (PMG).
To simplify tax compliance for Startups and foreign investors, the Income Tax
Act, 1961 has been amended in 2024 to abolish angel tax and to reduce income
tax rate chargeable on income of a foreign company. The GST reforms
introduced in September 2025 represent a landmark step in reshaping India’s
taxation system to better serve the aspirations of its youth. These reforms
streamline tax structures, reduce rates, and correct existing anomalies to
promote entrepreneurship, job creation, and affordable living. Priority has been
given to sectors with high youth participation, including education, automobiles,
technology, handicrafts, footwear, healthcare, food processing, and textiles, to
strengthen innovation and competitiveness.
Further, a simplified GST structure with reduced rates across key sectors such
as leather, footwear, paper, textiles, handicrafts, toys, packaging, and logistics
is expected to support existing businesses, encourage startups, and ease
compliance for traders. By lowering GST slabs to 5% on several goods and
rationalising rates in transport and allied sectors, the reforms aim to reduce
costs for consumers, ease compliance for traders and enhance
competitiveness for Indian businesses.
(c): The details of Sectors and States that have attracted FDI growth in Financial
Year 2024-25 compared to Financial Year 2023-24 are at Annexure-I and
Annexure-II respectively.
********ANNEXURE-I
ANNEXURE REFERRED TO IN REPLY TO PART (c) OF THE LOK SABHA UNSTARRED
QUESTION NO. 1648 FOR ANSWER ON 10.02.2026.
STATEMENT ON SECTORS REGISTERING GROWTH IN FDI EQUITY
Amount (In USD Million)
Sr. Sector 2023-24 2024-25 Increase % Growth
No. in 24-25
over
23-24
1 2 3 4 5 6
1 SERVICES SECTOR (Fin., Banking, 6,640.24 9,347.25 2,707.01 41%
Insurance, Non Fin/Business,
Outsourcing, R&D, Courier, Tech.
Testing and Analysis, Other)
2 TRADING 3,864.88 4,175.54 310.66 8%
3 NON-CONVENTIONAL ENERGY 3,764.06 4,011.86 247.80 7%
4 ELECTRONICS 695.74 2,043.04 1,347.30 194%
5 CEMENT AND GYPSUM PRODUCTS 613.44 1,812.56 1,199.12 195%
6 AUTOMOBILE INDUSTRY 1,524.22 1,586.31 62.09 4%
7 HOSPITAL & DIAGNOSTIC CENTRES 1,530.06 1,558.83 28.77 2%
8 AIR TRANSPORT (INCLUDING AIR 97.38 1,349.25 1,251.87 1286%
FREIGHT)
9 HOTEL & TOURISM 511.1 1,307.48 796.38 156%
10 CONSULTANCY SERVICES 734.65 1,061.03 326.38 44%
11 CHEMICALS (OTHER THAN 843.97 1,060.33 216.36 26%
FERTILIZERS)
12 METALLURGICAL INDUSTRIES 286.21 950.99 664.78 232%
13 TELECOMMUNICATIONS 281.66 746.2 464.54 165%
14 MEDICAL AND SURGICAL 482.83 626.99 144.16 30%
APPLIANCES
15 MISCELLANEOUS INDUSTRIES 462.25 539.78 77.53 17%
16 CONSTRUCTION DEVELOPMENT: 254.65 528.55 273.90 108%
Townships, housing, built-up
infrastructure and construction-
development projects
17 INDUSTRIAL MACHINERY 406.52 509.65 103.13 25%
18 EDUCATION 344.01 468.24 124.23 36%
19 RETAIL TRADING 165.51 204.76 39.25 24%
20 FERMENTATION INDUSTRIES 107 191.79 84.79 79%
21 DIAMOND, GOLD ORNAMENTS 37.97 157.7 119.73 315%
22 SOAPS, COSMETICS & TOILET 75.16 92.5 17.34 23%
PREPARATIONS
23 SCIENTIFIC INSTRUMENTS 70.54 85.53 14.99 21%
24 EARTH-MOVING MACHINERY 22.62 69.37 46.75 207%
25 VEGETABLE OILS AND VANASPATI 59.35 62.21 2.86 5%
26 TEA AND COFFEE (PROCESSING & 10.28 38.84 28.56 278%
WAREHOUSING COFFEE & RUBBER)
27 CERAMICS 35.25 35.49 0.24 1%
28 TIMBER PRODUCTS 8.89 30.59 21.70 244%
29 GLASS 18.05 23.66 5.61 31%
30 AGRICULTURAL MACHINERY 2.22 17.08 14.86 669%
31 SUGAR 1.65 2.13 0.48 29%
32 BOILERS AND STEAM GENERATING 0.06 1.19 1.13 1883%
PLANTS
Note: Total FDI inflow includes equity inflow, equity capital of unincorporated bodies, re- invested earnings, and
other capital. Sector/State/Country-wise details are maintained only for equity component of FDI inflow.
*******ANNEXURE-II
ANNEXURE REFERRED TO IN REPLY TO PART (c) OF THE LOK SABHA UNSTARRED
QUESTION NO. 1648 FOR ANSWER ON 10.02.2026.
STATEMENT ON STATES REGISTERING GROWTH IN FDI EQUITY INFLOW
Amount (In USD Million)
Sr. State Name 2023-24 2024-25 Increase in 24-25 (%age Growth)
No. over 23-24
1 2 3 4 5 6
1 MAHARASHTRA 15,115.54 19,588.92 4,473.38 30%
2 KARNATAKA 6,570.62 6,618.57 47.95 1%
3 TAMIL NADU 2,436.33 3,681.36 1,245.03 51%
4 HARYANA 1,907.79 3,147.35 1,239.56 65%
5 UTTAR PRADESH 333.61 435.83 102.22 31%
6 KERALA 196.7 396.5 199.80 102%
7 RAJASTHAN 265.43 374.48 109.05 41%
8 WEST BENGAL 181.49 298.38 116.89 64%
9 ANDHRA PRADESH 92.13 233.14 141.01 153%
10 HIMACHAL PRADESH 55.55 112.56 57.01 103%
11 CHHATTISGARH 50.5 81.27 30.77 61%
12 MADHYA PRADESH 23.59 59.61 36.02 153%
13 PUDUCHERRY 4.76 7.92 3.16 66%
14 ASSAM 0.23 2.88 2.65 1152%
15 BIHAR 0.16 1.19 1.03 644%
16 TRIPURA 0.19 0.47 0.28 47%
17 JAMMU AND KASHMIR 0.003 0.25 0.25 8233%
18 MEGHALAYA 0.003 0.11 0.11 3567%
Note: Total FDI inflow includes equity inflow, equity capital of unincorporated bodies, re- invested
earnings, and other capital. Sector/State/Country-wise details are maintained only for equity component
of FDI inflow.
*********