Study on Trend Patterns of Foreign Direct Investment in India

Author(s)	Mr. M SureshKumar, Dr. A Gopalakrishnan
Country	India
Abstract	This study comprehensively analyses the trends, sector-wise distribution, and country-wise inflows of foreign direct investment into India from 2000-01 to 2024-25. It highlights India's transformation into a major global investment destination driven by progressive economic reforms, liberalized foreign direct investment policies, and initiatives such as “Make in India” and GST. The study draws from secondary data sources including reports from the Department for Promotion of Industry and Internal Trade and the Reserve Bank of India. It finds that India’s cumulative gross foreign direct investment inflows crossed the $1 trillion mark during this period, with Maharashtra, Karnataka, and Gujarat leading state-wise contributions. Sectorally, services and IT/software attracted the most foreign direct investment, while Mauritius and Singapore remained the top source countries. The research provides evidence of the strong correlation between policy liberalization and foreign direct investment growth, though recent data suggest a deceleration due to global economic uncertainties and emerging regional competition.
Keywords	foreign direct investment, economic development, investment policy, liberalization, and globalization
Field	Sociology > Economics
Published In	Volume 8, Issue 4, July-August 2026
Published On	2026-08-20
DOI	https://doi.org/10.36948/ijfmr.2026.v08i04.83930

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