|
Even as global foreign direct investment (FDI) has been losing momentum over the years, India's gross FDI inflows have remained resilient, supported by steady investment interest, according to a report by CareEdge Ratings.
The report highlighted that gross FDI inflows into India have stayed at healthy levels over the past decade. Gross inflows stood at USD 55.6 billion in FY16 and gradually rose to USD 60.2 billion in FY17, USD 61 billion in FY18 and USD 62 billion in FY19. Inflows strengthened further to USD 74.4 billion in FY20, USD 82 billion in FY21 and peaked at USD 84.8 billion in FY22. While inflows moderated thereafter but they remained robust at USD 71.4 billion in FY23, USD 71.3 billion in FY24 and USD 80.6 billion in FY25. For FY26 year-to-date, gross FDI inflows are recorded at USD 50.4 billion as of September 2025. In contrast, global FDI has been steadily losing steam. CareEdge Ratings highlighted that global net FDI inflows as a percentage of GDP have declined since the Global Financial Crisis, with successive shocks such as the Euro Area debt crisis, the Covid-19 pandemic and the Russia-Ukraine war adding further pressure. It stated "Global FDI net inflows as a percentage of GDP have declined since the Global Financial Crisis, with subsequent shocks adding further pressure". The report pointed out that India has seen strong growth in greenfield investments across sectors such as semiconductors, electronics, electrical equipment, EV components and basic metals. At the same time, outward FDI from India averaged USD 22 billion during FY24-FY25, marking a 58 per cent increase over the average of USD 14 billion seen during FY21-FY23. So this showed that the Indian firms expanded their global footprint, particularly in Europe, South America and Africa, investing in sectors including telecom, automotive, energy, defence, pharma, ports and steel. The report also pointed out that the five-year moving average of global FDI inflows shows a clear downward trend over the past decade. So the report highlighted that while the global investment environment remains challenging, India's ability to attract healthy levels of gross FDI reflects its relative strength as an investment destination amid global uncertainty. (ANI)
|
