Computer hardware and software sector in India received the highest share in FDIs amounting to over seven billion U.S. dollars in fiscal year 2024. The services sector came second amounting to over six billion dollars.
Services sector in limelight
All in all, the business services sector in the country seemed to be faring very well in terms of attention from foreign investors. One possible reason for this could be because almost 65 percent of the registered foreign companies in India were under this sector. Out of this, most companies were registered in Delhi, followed by Maharashtra indicating a good business trajectory.
FDIs to aid an ailing economy
Foreign investments play a critical role in developing countries since they help bring in resources, latest technologies and best practices that help push economic growth on to a higher curve. In August 2019, India opened its doors further to FDIs by loosening its grip on the sourcing requirements for various sectors. The government also allowed 100 percent FDI in sectors like commercial coal mining and contract manufacturing, hoping to diversify its supply chains. These were just some of the measures being taken by the government in order to give a stimulus to the ailing economy.
Distribution of foreign direct investment equity inflows in India for financial year 2024, by sector
(in million U.S. dollars)
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Department for Promotion of Industry and Internal Trade (India). (May 30, 2024). Distribution of foreign direct investment equity inflows in India for financial year 2024, by sector (in million U.S. dollars) [Graph]. In Statista. Retrieved December 21, 2024, from https://www.statista.com/statistics/711398/india-fdi-equity-inflows-distribution-by-sector/
Department for Promotion of Industry and Internal Trade (India). "Distribution of foreign direct investment equity inflows in India for financial year 2024, by sector (in million U.S. dollars) ." Chart. May 30, 2024. Statista. Accessed December 21, 2024. https://www.statista.com/statistics/711398/india-fdi-equity-inflows-distribution-by-sector/
Department for Promotion of Industry and Internal Trade (India). (2024). Distribution of foreign direct investment equity inflows in India for financial year 2024, by sector (in million U.S. dollars) . Statista. Statista Inc.. Accessed: December 21, 2024. https://www.statista.com/statistics/711398/india-fdi-equity-inflows-distribution-by-sector/
Department for Promotion of Industry and Internal Trade (India). "Distribution of Foreign Direct Investment Equity Inflows in India for Financial Year 2024, by Sector (in Million U.S. Dollars) ." Statista, Statista Inc., 30 May 2024, https://www.statista.com/statistics/711398/india-fdi-equity-inflows-distribution-by-sector/
Department for Promotion of Industry and Internal Trade (India), Distribution of foreign direct investment equity inflows in India for financial year 2024, by sector (in million U.S. dollars) Statista, https://www.statista.com/statistics/711398/india-fdi-equity-inflows-distribution-by-sector/ (last visited December 21, 2024)
Distribution of foreign direct investment equity inflows in India for financial year 2024, by sector (in million U.S. dollars) [Graph], Department for Promotion of Industry and Internal Trade (India), May 30, 2024. [Online]. Available: https://www.statista.com/statistics/711398/india-fdi-equity-inflows-distribution-by-sector/