Key Highlights
- United States and Singapore collectively supplied more than a third of all FDI inflows into India during FY 2024‑25.
- The recent FLA census involved 45,702 Indian firms, 41,517 of which reported either inward or outward direct investment.
- Manufacturing emerged as the top recipient sector, accounting for nearly half of total FDI equity.
- India’s outward direct investment grew faster (17.9%) than inward investment (11.1%), narrowing the inward‑outward gap.
Detailed Insights
Scope of the Census: The Reserve Bank of India’s provisional FLA data released on 29 October 2025 cover cross‑border liabilities and assets of over four‑thousand Indian enterprises.
Participant profile: 97 % of respondents were unlisted corporates; 90.5 % of FDI equity is held by non‑financial firms.
Major FDI sources: The United States accounted for 20 % and Singapore for 14.3 % of all inflows, collectively exceeding one‑third of the ₹68,75,931 crore total. Mauritius, the United Kingdom and the Netherlands followed at 13.3 %, 11.2 % and 9 % respectively.
Sectoral distribution: Manufacturing captured 48.4 % of FDI equity (market value) and 37.8 % at face value, while services ranked second.
Outward investment trends: India’s ODI reached ₹11,66,790 crore, with Singapore contributing 22.2 %, the United States 15.4 %, the United Kingdom 12.8 % and the Netherlands 9.6 %.
Inward‑Outward ratio: The ratio slipped from 6.3 to 5.9 times between the previous census and March 2025, indicating a narrowing gap.
Key Concepts
- Foreign Direct Investment (FDI): Expenditure by a foreign entity to acquire an equity stake of 10 % or more in an Indian company, thereby gaining control.
- Outward Direct Investment (ODI): Expenditure by Indian companies abroad to acquire controlling equity in foreign enterprises.
- Foreign Liabilities and Assets (FLA) Census: An annual survey by the RBI that records cross‑border obligations and holdings of Indian corporates.
- Inward‑Outward Ratio: A metric comparing total FDI inflows with ODI outflows to assess the relative scale of India’s investment integration.