2024 has been a wholesome year for India. Its journey towards becoming a dominant global economic force has gained significant momentum in 2024. This growth isn’t just about numbers; it reflects India’s commitment to innovation, infrastructure development, and global partnerships. To add to this growth, FDI, Trade, Import, and export are the key components. From April 2000 to Sept, 20224, India received a whopping FDI Inflow worth 1,033,400 USD Million.
Let us have a quick look at the FDI Inflows made into the country, the growth, and future possibilities India must seize.
Top Investing Countries FDI Equity Inflow
Foreign Direct Investment (FDI) in India has impressively grown over the years. Mauritius holds a major chunk of 25% of the overall FDI received in India, followed by Singapore at 24%, the USA at 10%, and so on. Interestingly, in 2024, some major policy reforms included the liberalization of FDI limits across sectors, tax incentives, and improvements in ease of doing business. Refer to the following cumulative country-wise FDI equity inflow.
| Top FDI Investing Countries | 2022-2023 | 2023-2024 | 2024-2025 |
| Mauritius | 6.13 | 7.97 | 5.34 |
| Singapore | 17.20 | 11.77 | 7.5 |
| U.S.A | 6.04 | 4.99 | 2.57 |
| Netherland | 2.49 | 4.92 | 3.58 |
| Japan | 1.79 | 3.17 | 1.19 |
| UAE | 3.35 | 2.92 | 3.47 |
Sectors Received Highest FDI Equity Inflows
The countries that have significantly contributed to FDI have largely vested interest in industries like Computer Software, Hardware that have gained 15% of FDI followed by Telecommunications 6% of FDI. Even industries like non-conventional energy have received significant traction reflecting a positive shift to Development and Innovation.
| Sectors | 2022-23 | 2023-24 | 2024-25 |
| Computer Software & Hardware | 9394 | 7973 | 4193 |
| Telecommunications | 713 | 282 | 670 |
| Automobile Industry | 1902 | 1524 | 944 |
| Construction (Infrastructure) | 1703 | 4232 | 1324 |
| Construction Development (Townships, Housing, Built-Up, Infrastructure) | 147 | 255 | 153 |
| Drugs & Pharmaceuticals | 2058 | 1064 | 520 |
| Chemicals (Other than Fertilizers) | 1850 | 844 | 727 |
Most Exported Products from India from 2022-2024
Not just with FDI, India’s trade performance steadily increased in 2024 which shows the country’s rising prominence as a dominant player in international markets. This year 2024 marked achievements in exports and imports backed by robust policies and strategic partnerships.
| Products | Exported Value 2022-2023 | Exported Value 2023-2024 |
| Pharmaceutical Products | 19,861 | 22,105 |
| Aircraft, Spacecraft & Parts Thereof | 1430 | 3243 |
| Ores, Slag & Ash | 2185 | 4267 |
| Articles of Iron or Steel | 9811 | 9939 |
| Copper and Articles | 1671 | 2314 |
Top Imported Commodities from 2022 to 2024
To support overall development of India, the country imported several commodities including Organic Chemicals, Pharmaceutical Products, Fertilizers, Mineral Fuels, Plastics, and other articles. These commodities played a pivotal role in driving industrial growth, sustaining energy needs, and supporting agricultural and healthcare sectors.
| Products | Imported Value 2022-2023 | Imported Value 2023-2024 |
| Organic Chemicals | 28975 | 26745 |
| Pharmaceutical Products | 2616 | 2584 |
| Fertilisers | 15322 | 8923 |
| Mineral Fuels, Mineral Oils | 260921 | 219053 |
| Plastic and Articles Thereof | 23122 | 21830 |
How India Can Get Better Trade Opportunities in the Future?
As per the Federation of Indian Export Organisations (FIEO), the US plans to impose higher tariffs on China. Given the prevailing global situation, India can seize an opportunity where the US is in talks to impose higher tariffs on China. Indian exports can increase particularly in sectors where China has an edge. These sectors are as follows:
1. Electronics
2. Electrical Equipment
3. Footwear
4. Textile
5. Garment
6. Furniture
7. Automotive Parts
8. Toy
9. Chemical
The FIEO President, Ashwani Kumar suggests India must focus on expanding its presence in the US by showcasing.
“numerous exhibitions, holding buyer-seller meetings, and partnering with large local retailer associations. A marketing scheme focusing on the US, with a corpus of Rs 250 crore per year (Rs 750 crore overall) for three years, may be launched to generate additional exports of $25 billion by the end of three years”
Key Steps to Boost US Exports
1. Tax deduction of 200-250 % for research and development spending under Section 35(2AB) of the Income Tax Act to promote product innovation.
2. Extend the interest equalization scheme and provide additional financial support for marketing, trade promotion, and income tax relief for MSME manufacturers.
3. Focus on building a US-focused marketing scheme with a corpus of 250 crores each year to get better exports.
India- the fifth largest economy in the world is anticipated to steadily narrow the gap with Germany which ranks fourth at present. Given the opportunities that lie ahead of the country, the global trade scenario, and India’s consistent trajectory of growth by strategic initiatives and focused economic policies. Check for the latest inflow and outflow activities of India using the Export Genius dashboard.
