Why in the news
In December 2024, cumulative FDI into India was shown to have passed USD 1 trillion.
Key facts
- Milestone: over USD 1 trillion cumulative FDI, April 2000-September 2024.
- Top sectors: led by services and computer software, then telecom, trading, construction, automobile, chemicals and pharma.
- FPI note: FPI inflow rose to ₹24,000 crore in the first week of December.
Share of FDI by source country
| Country | Share |
|---|
| Mauritius | 25% |
| Singapore | 24% |
| USA | 10% |
| Netherlands | 7% |
| Japan | 6% |
| UK | 5% |
| UAE | 3% |
| Cayman Islands, Germany, Cyprus | 2% each |
FDI versus FPI
| Point | FDI | FPI |
|---|
| Meaning | Business interests held abroad by a firm or individual | Holdings in stocks, bonds or securities |
| Control | Subsidiaries, mergers, joint ventures | None |
Exam angle
- Top source: Mauritius (25%), then Singapore (24%).
- FDI is a non-debt resource; securities purchases are FPI.