India’s Ministry of Commerce and Industry reports that the country received a total Foreign Direct Investment (FDI) inflow of $667.4 billion from 2014 to 2024, reflecting a remarkable 119% increase compared to the $304 billion inflow during the previous decade (2004-2014).
Representational image.
While it is commonly assumed that India’s FDI largely comes from global economic giants such as the United States, Japan, the UK, or Russia, an unexpected small African nation has emerged as the largest contributor to India’s FDI over the last 24 years. This nation has been responsible for 25% of India’s total FDI during this period. Let’s explore this surprising development further.
India Achieves $1 Trillion Milestone in FDI Over 24 Years
India’s total Foreign Direct Investment (FDI) inflows surpassed the $1 trillion mark from April 2000 to September 2024, emphasizing the country's increasing recognition as a safe and appealing investment destination worldwide.
According to the Department for Promotion of Industry and Internal Trade (DPIIT), the total FDI—comprising equity, reinvested earnings, and other capital inflows—reached $1,033.40 billion during this period. This achievement highlights India’s growth as a prominent global investment hub.
Mauritius: Leading Contributor to FDI
Mauritius has surprisingly emerged as the largest source of FDI to India, accounting for 25% of the total inflows. Singapore follows closely with 24%, while the United States contributes 10%, the Netherlands 7%, Japan 6%, the UK 5%, and the UAE 3%. Other significant contributors include the Cayman Islands, Germany, and Cyprus.
Between April 2000 and September 2024, India received $177.18 billion in FDI from Mauritius, $167.47 billion from Singapore, and $67.8 billion from the United States. These investments have predominantly flowed into sectors such as services, computer software and hardware, telecommunications, trading, construction development, automobiles, chemicals, and pharmaceuticals.
Decades of FDI Trends
The Ministry of Commerce and Industry reported that India received $667.4 billion in FDI inflows between 2014 and 2024, marking a 119% increase compared to the $304 billion recorded from 2004 to 2014.
The manufacturing sector saw significant growth, with FDI equity inflows rising to $165.1 billion during 2014–2024, a 69% increase from the preceding decade.
Why Mauritius Leads in Foreign Direct Investment in India
Mauritius’s leading role in Foreign Direct Investment (FDI) contributions is largely due to the India-Mauritius Double Taxation Avoidance Agreement (DTAA). This agreement has historically offered tax benefits to investors channeling funds through Mauritius, establishing it as a preferred route for global investors focusing on India.
India’s success in attracting over $1 trillion in FDI over 24 years highlights its position as a prominent global investment hub. Although Mauritius remains the top contributor, significant inflows from countries such as Singapore and the United States reflect the strong confidence of international investors in India’s growth potential.
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