Lok Sabha Question No. 1648 (UNSTARRED), answered on 2026-02-10
Subject: India’s Rise in Global FDI Rankings
Ministry: COMMERCE AND INDUSTRY
Asked by: Shri Baijayant Panda

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE

## LOK SABHA

UNSTARRED QUESTION NO. 1648. TO BE ANSWERED ON TUESDAY, THE 10 TH  FEBRUARY, 2026.

## INDIA'S RISE IN GLOBAL FDI RANKINGS

## 1648.  SHRI BAIJAYANT PANDA:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state: वाणिज्य एवं उद्योग मंत्री

- (a) whether the Government has identified the key factors that have contributed to India's  rise  in  the  global  FDI  rankings  as  reported  in  the  United  Nations Conference on Trade and Development (UNCTAD) World Investment Report 2025;
- (b) if so, the details thereof; and
- (c) the details of sectors and States that have attracted the highest FDI growth?

## ANSWER

## वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री ( श्री णिणिन प्रसाद ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI JITIN PRASADA)

- (a) & (b): As  per  United  Nations  Conference  on  Trade  and  Development's(UNCTAD) World Investment Report 2025, India moved up to 15th position among global Foreign Direct Investment (FDI) recipients in 2024 from 16th position in 2023.

The  Government  reviews  the  FDI  policies  on  an  ongoing  basis  and  makes changes from time to time to ensure that India remains an attractive & investorfriendly  destination.  Between  2014  and  2019,  significant  reforms  included increased FDI caps in Defence, Insurance, and Pension sectors, and liberalized policies for Construction, Civil Aviation, and Single Brand Retail Trading. From 2019  to  2024,  notable  measures  included  allowing  100%  FDI  under  the automatic route in coal mining, contract manufacturing, and  insurance intermediaries.

The  Government  of  India  always  strives  to  attract  larger  FDI  by  removing regulatory barriers, streamlining processes, developing infrastructure, bettering logistics  and  improving the business environment by enhancing the Ease of Doing Business (EoDB).

The Government of India released Business Reforms Action Plan (BRAP) 2024 rankings and Logistics Ease Across Different States (LEADS) 2024 report to inter-alia  communicate  to  potential  investors  examples  of  positive  business ecosystem as well as logistics performance undertaken by various States and UTs. The Regulatory Compliance Burden (RCB) initiative has resulted in over 42,000 compliance reductions, under 670 acts nationwide. Through the Jan Vishwas (Amendment of Provisions) Act, 2023, the Government has decriminalised 183 provisions across 42 Central Acts from 19 Ministries/Departments.

The  Government  also provides an enabling environment for industrial development through policy interventions and initiatives such as Make in India, Start-up  India,  PM  GatiShakti,  National  Industrial  Corridor  Programme,  PLI schemes,  Indian  Footwear  and  Leather  Development  Programme,  National Single  Window  System  (NSWS),  India  Industrial  Land  Bank  and  Project Monitoring Group (PMG).

To simplify tax compliance for Startups and foreign investors, the Income Tax Act, 1961 has been amended in 2024 to abolish angel tax and to reduce income tax  rate  chargeable  on  income  of  a  foreign  company.  The  GST  reforms introduced in September 2025 represent a landmark step in reshaping India's taxation  system  to  better  serve  the  aspirations  of  its  youth.  These  reforms streamline  tax  structures,  reduce  rates,  and  correct  existing  anomalies  to promote entrepreneurship, job creation, and affordable living. Priority has been given to sectors with high youth participation, including education, automobiles, technology, handicrafts, footwear, healthcare, food processing, and textiles, to strengthen innovation and competitiveness.

Further, a simplified GST structure with reduced rates across key sectors such as leather, footwear, paper, textiles, handicrafts, toys, packaging, and  logistics is  expected  to  support  existing  businesses,  encourage  startups,  and  ease compliance for traders. By lowering GST slabs to 5% on several goods and rationalising rates in transport and allied sectors, the reforms aim to reduce costs for consumers, ease compliance for traders and enhance competitiveness for Indian businesses.

- (c): The details of Sectors and States that have attracted FDI growth in Financial Year  2024-25  compared  to  Financial  Year  2023-24  are  at  Annexure-I  and Annexure-II respectively.

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## ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (c)  OF  THE  LOK  SABHA  UNSTARRED QUESTION NO. 1648 FOR ANSWER ON 10.02.2026.

## STATEMENT ON SECTORS REGISTERING GROWTH IN FDI EQUITY

Amount (In USD Million)

|   Sr. No. | Sector                                                                                                                     | 2023-24   | 2024-25   | Increase in 24-25 over 23-24   | %Growth   |
|-----------|----------------------------------------------------------------------------------------------------------------------------|-----------|-----------|--------------------------------|-----------|
|         1 | 2                                                                                                                          | 3         | 4         | 5                              | 6         |
|         1 | SERVICES SECTOR (Fin., Banking, Insurance, Non Fin/Business, Outsourcing, R&D, Courier, Tech. Testing and Analysis, Other) | 6,640.24  | 9,347.25  | 2,707.01                       | 41%       |
|         2 | TRADING                                                                                                                    | 3,864.88  | 4,175.54  | 310.66                         | 8%        |
|         3 | NON-CONVENTIONAL ENERGY                                                                                                    | 3,764.06  | 4,011.86  | 247.80                         | 7%        |
|         4 | ELECTRONICS                                                                                                                | 695.74    | 2,043.04  | 1,347.30                       | 194%      |
|         5 | CEMENT AND GYPSUM PRODUCTS                                                                                                 | 613.44    | 1,812.56  | 1,199.12                       | 195%      |
|         6 | AUTOMOBILE INDUSTRY                                                                                                        | 1,524.22  | 1,586.31  | 62.09                          | 4%        |
|         7 | HOSPITAL & DIAGNOSTIC CENTRES                                                                                              | 1,530.06  | 1,558.83  | 28.77                          | 2%        |
|         8 | AIR TRANSPORT (INCLUDING AIR FREIGHT)                                                                                      | 97.38     | 1,349.25  | 1,251.87                       | 1286%     |
|         9 | HOTEL & TOURISM                                                                                                            | 511.1     | 1,307.48  | 796.38                         | 156%      |
|        10 | CONSULTANCY SERVICES                                                                                                       | 734.65    | 1,061.03  | 326.38                         | 44%       |
|        11 | CHEMICALS (OTHER THAN FERTILIZERS)                                                                                         | 843.97    | 1,060.33  | 216.36                         | 26%       |
|        12 | METALLURGICAL INDUSTRIES                                                                                                   | 286.21    | 950.99    | 664.78                         | 232%      |
|        13 | TELECOMMUNICATIONS                                                                                                         | 281.66    | 746.2     | 464.54                         | 165%      |
|        14 | MEDICAL AND SURGICAL APPLIANCES                                                                                            | 482.83    | 626.99    | 144.16                         | 30%       |
|        15 | MISCELLANEOUS INDUSTRIES                                                                                                   | 462.25    | 539.78    | 77.53                          | 17%       |
|        16 | CONSTRUCTION DEVELOPMENT: Townships, housing, built-up infrastructure and construction- development projects               | 254.65    | 528.55    | 273.90                         | 108%      |
|        17 | INDUSTRIAL MACHINERY                                                                                                       | 406.52    | 509.65    | 103.13                         | 25%       |
|        18 | EDUCATION                                                                                                                  | 344.01    | 468.24    | 124.23                         | 36%       |
|        19 | RETAIL TRADING                                                                                                             | 165.51    | 204.76    | 39.25                          | 24%       |
|        20 | FERMENTATION INDUSTRIES                                                                                                    | 107       | 191.79    | 84.79                          | 79%       |
|        21 | DIAMOND, GOLD ORNAMENTS                                                                                                    | 37.97     | 157.7     | 119.73                         | 315%      |
|        22 | SOAPS, COSMETICS & TOILET PREPARATIONS                                                                                     | 75.16     | 92.5      | 17.34                          | 23%       |
|        23 | SCIENTIFIC INSTRUMENTS                                                                                                     | 70.54     | 85.53     | 14.99                          | 21%       |
|        24 | EARTH-MOVING MACHINERY                                                                                                     | 22.62     | 69.37     | 46.75                          | 207%      |
|        25 | VEGETABLE OILS AND VANASPATI                                                                                               | 59.35     | 62.21     | 2.86                           | 5%        |
|        26 | TEA AND COFFEE (PROCESSING & WAREHOUSING COFFEE & RUBBER)                                                                  | 10.28     | 38.84     | 28.56                          | 278%      |
|        27 | CERAMICS                                                                                                                   | 35.25     | 35.49     | 0.24                           | 1%        |
|        28 | TIMBER PRODUCTS                                                                                                            | 8.89      | 30.59     | 21.70                          | 244%      |
|        29 | GLASS                                                                                                                      | 18.05     | 23.66     | 5.61                           | 31%       |
|        30 | AGRICULTURAL MACHINERY                                                                                                     | 2.22      | 17.08     | 14.86                          | 669%      |
|        31 | SUGAR                                                                                                                      | 1.65      | 2.13      | 0.48                           | 29%       |
|        32 | BOILERS AND STEAM GENERATING PLANTS                                                                                        | 0.06      | 1.19      | 1.13                           | 1883%     |

Note: Total FDI inflow includes equity inflow, equity capital of unincorporated bodies, re- invested earnings, and other capital. Sector/State/Country-wise details are maintained  only for equity component of FDI inflow.

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ANNEXURE-II

## ANNEXURE REFERRED TO IN REPLY TO PART (c) OF THE LOK SABHA UNSTARRED QUESTION NO. 1648 FOR ANSWER ON 10.02.2026.

## STATEMENT ON STATES REGISTERING GROWTH IN FDI EQUITY INFLOW

Amount (In USD Million)

|   Sr. No. | State Name        | 2023-24   | 2024-25   | Increase in 24-25 over 23-24   | (%age Growth)   |
|-----------|-------------------|-----------|-----------|--------------------------------|-----------------|
|         1 | 2                 | 3         | 4         | 5                              | 6               |
|         1 | MAHARASHTRA       | 15,115.54 | 19,588.92 | 4,473.38                       | 30%             |
|         2 | KARNATAKA         | 6,570.62  | 6,618.57  | 47.95                          | 1%              |
|         3 | TAMIL NADU        | 2,436.33  | 3,681.36  | 1,245.03                       | 51%             |
|         4 | HARYANA           | 1,907.79  | 3,147.35  | 1,239.56                       | 65%             |
|         5 | UTTAR PRADESH     | 333.61    | 435.83    | 102.22                         | 31%             |
|         6 | KERALA            | 196.7     | 396.5     | 199.80                         | 102%            |
|         7 | RAJASTHAN         | 265.43    | 374.48    | 109.05                         | 41%             |
|         8 | WEST BENGAL       | 181.49    | 298.38    | 116.89                         | 64%             |
|         9 | ANDHRA PRADESH    | 92.13     | 233.14    | 141.01                         | 153%            |
|        10 | HIMACHAL PRADESH  | 55.55     | 112.56    | 57.01                          | 103%            |
|        11 | CHHATTISGARH      | 50.5      | 81.27     | 30.77                          | 61%             |
|        12 | MADHYA PRADESH    | 23.59     | 59.61     | 36.02                          | 153%            |
|        13 | PUDUCHERRY        | 4.76      | 7.92      | 3.16                           | 66%             |
|        14 | ASSAM             | 0.23      | 2.88      | 2.65                           | 1152%           |
|        15 | BIHAR             | 0.16      | 1.19      | 1.03                           | 644%            |
|        16 | TRIPURA           | 0.19      | 0.47      | 0.28                           | 47%             |
|        17 | JAMMU AND KASHMIR | 0.003     | 0.25      | 0.25                           | 8233%           |
|        18 | MEGHALAYA         | 0.003     | 0.11      | 0.11                           | 3567%           |

Note:  Total  FDI  inflow  includes  equity  inflow,  equity  capital  of  unincorporated  bodies,  re-  invested earnings, and other capital. Sector/State/Country-wise details are maintained  only for equity component of FDI inflow.

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