‘India FDI slid 1.8% in 2024, share in capital formation declining’

FDI Inflows Fell by 1.8% – India attracted $27.6 billion in FDI in 2024, down from 2023 and less than half of 2020 levels.

Declining Role in Capital Formation – FDI contributed just 2.3% of total capital formation in 2024, a sharp drop from 8.8% in 2020.

Lower Share in GDP – The total stock of foreign investment fell to 14% of GDP (from 17.9% in 2020), signaling reduced reliance on foreign capital.

Domestic Investment Strong – Despite the FDI slump, overall capital formation remained robust, supported by other funding sources.