India recorded its highest-ever foreign direct investment (FDI) inflow for the first half of a financial year, with total inflows rising 16 per cent to $50.36 billion in the April–September period of FY 2025-26, compared with $43.37 billion a year earlier. Minister of State for Commerce and Industry, Jitin Prasada, shared the data in the Lok Sabha, noting that gross FDI inflows have expanded significantly over the past decade—from over $34 billion in 2012-13 to more than $80 billion in 2024-25.
According to official figures, the second quarter of the current financial year saw a particularly strong rebound, with inflows surging more than 18 per cent year-on-year to $35.18 billion. Prasada attributed recent trends in net FDI to higher repatriation and disinvestment levels, along with a rise in Overseas Direct Investment (ODI) outflows. He explained that liberalized ODI rules introduced in 2022 have enabled Indian companies to expand their global footprint, strengthening India’s long-term economic position.
The Minister emphasized that the growing rate of repatriation reflects both profitability and confidence in the Indian market, reinforcing India’s appeal as a reliable investment destination.
Prasada also highlighted the government’s strategic use of free trade agreements (FTAs) to boost export diversification and attract investment. India has so far signed 15 FTAs and six preferential trade agreements with key partners. He cited the India–European Free Trade Association (EFTA) Trade and Economic Partnership Agreement, signed on March 10, 2024, as a landmark pact that includes a unilateral commitment of $100 billion in investments and the creation of one million direct jobs over 15 years from EFTA nations.
The government continues to assist exporters in leveraging FTAs with Japan, Korea and the UAE, and is tapping opportunities from recent agreements with EFTA and the UK. Parallel efforts are underway to fast-track balanced FTAs with the EU, Peru, Chile, New Zealand and Oman, while also addressing concerns arising from recent U.S. tariff measures.
.jpg)
