Foreign Direct Investment
- Net Foreign Direct Investment (FDI) into India declined sharply by over 96% in 2024–25 compared to the previous year. This drop was mainly due to increased capital outflows by foreign companies and rising overseas investments by Indian firms.
- About FDI:
- FDI refers to investments made by residents outside India through equity in unlisted Indian companies or by acquiring 10% or more equity in listed companies. The Department for Promotion of Industry and Internal Trade (DPIIT) oversees FDI policies. FDI is vital for India’s economy as it provides non-debt finance, brings in capital, technology, and global business practices, fostering job creation and sectoral growth.