India has recently achieved a significant milestone in foreign direct investment (FDI), surpassing the $1 trillion mark in cumulative inflows over the past 24 years. As of September 2024, total FDI inflows reached approximately $1,033.40 billion, according to data from the Department for Promotion of Industry and Internal Trade (DPIIT) . This surge reflects the increasing attractiveness of India as a global investment destination, driven by its robust economic growth and favourable investment climate.

The FDI inflows from April 2000 to September 2024 have shown a remarkable increase, with a notable acceleration in recent years. In the current financial year alone (April-September 2024), FDI inflows jumped by 45% to $29.79 billion, compared to $20.5 billion during the same period last year .

Major sectors benefiting from these investments include automobiles, IT services, telecommunications, pharmaceuticals, and renewable energy. The non-conventional energy sector has particularly seen a significant uptick in FDI .

Maharashtra emerged as the leading state for FDI inflows, attracting $13.55 billion in the first half of FY 2024-25, followed by Karnataka and Gujarat .

The Indian government has implemented several reforms to enhance the ease of doing business and attract foreign investments. Initiatives like the Production Linked Incentive (PLI) scheme have been pivotal in boosting manufacturing and creating jobs .

Analysts expect continued growth in FDI inflows as India positions itself as a preferred investment hub amidst global economic uncertainties. The OECD has projected India to be one of the fastest-growing economies in the G20 for FY 2023-24, with an anticipated GDP growth rate of 5.7% .

This milestone not only underscores India's economic potential but also reflects global confidence in its market dynamics and policy framework aimed at facilitating foreign investments.