New Delhi, December 2: Foreign Direct Investment (FDI) inflow increased by 16 percent on annual basis to $50.36 billion in the first half of the current financial year (FY26). This is the highest foreign investment received in the first half of any financial year so far. In the same period of the previous financial year, it was $43.37 billion. This information was given by the government in Parliament.
Union Minister of State for Commerce and Industry Jitin Prasada told the Lok Sabha that gross FDI inflow increased to over $80 billion in FY 2024-25, which was over $34 billion in FY 2012-13.
According to official data, India recorded a strong surge in FDI in the second quarter of the current financial year (April-September 2025), with total inflow increasing by 18 percent annually to $35.18 billion.
Prasada said, “The recent trend of net FDI inflow is linked to increasing disinvestment and rising Overseas Direct Investment (ODI) outflow. ODI outflow due to liberal ODI rules notified in 2022 is helping Indian entities expand their business abroad, enabling them to compete in the global market, thereby strengthening the Indian economy.”
According to the Union Minister, the increasing trend of repatriation shows that India is not only attracting foreign capital but also providing strong returns, which is enhancing the country’s reputation as a reliable investment destination.
The Union Minister further said that the country has signed Free Trade Agreements (FTA) with 15 countries and Preferential Trade Agreements (PTA) with 6 countries to diversify its exports.
He further informed that the government is working with all stakeholders so that our exporters can make better use of India’s FTA benefits with major markets like Japan, Korea, United Arab Emirates and effectively utilize opportunities created by recent trade agreements with EFTA countries and the UK.
The government is negotiating to quickly complete mutually beneficial FTAs with the European Union, Peru, Chile, New Zealand, Oman and others.
He further said that the government is discussing with all stakeholders including exporters, Export Promotion Councils (EPCs), industry associations and state governments to assess the growing impact of American tariff measures.
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