The United States has retained its position as the largest source of foreign direct investment (FDI) in India, according to the latest annual census released by the Reserve Bank of India (RBI). The census, which tracks foreign liabilities and assets of Indian direct investment entities, revealed that Mauritius, Singapore, and the UK followed closely behind the U.S. in contributing to FDI in the country.
The RBI’s Census on Foreign Liabilities and Assets of Indian Direct Investment Entities for 2023-24 surveyed 41,653 entities, of which 37,407 reported FDI and/or overseas direct investment (ODI) on their balance sheets for the fiscal year ending March 2024. This marked a significant continuation of foreign investment inflows into India, bolstering its economic position as a key destination for global capital.
Of the entities that reported in this year’s census, 29,926 had participated in the previous round, while 7,481 were new additions, indicating growing interest from foreign investors in India’s dynamic market. The census results also underscore the crucial role of the U.S. and other key nations in supporting India’s economic growth through sustained investment.
The U.S. has consistently been a top investor in India, leveraging opportunities across sectors such as technology, manufacturing, and services. Mauritius and Singapore remain significant contributors due to their advantageous tax treaties with India, while the UK continues to play an important role as a longstanding investor.
The census serves as a critical barometer for policymakers and businesses alike, offering insights into the trends shaping India’s foreign investment landscape. As India continues to position itself as a global economic hub, the ongoing influx of FDI will be instrumental in driving innovation, creating jobs, and supporting infrastructure development in the coming years.
The data also reflects India’s continued attractiveness as a destination for overseas investment, even in an environment of global economic uncertainty. The government’s policy efforts to create a business-friendly environment and liberalize foreign investment norms have further contributed to this trend, helping India strengthen its role as a preferred market for international investors.
