India’s clean energy sector sees surge in FDI while other sectoral investments decline
Subscribe to enjoy similar stories. New Delhi: Foreign Direct Investment (FDI) equity inflows in the non-conventional energy sector surged in the first three of months of this financial year, making it the tenth-largest FDI destination of all time, underscoring rising global interest in India’s green energy initiatives.
Total FDI equity inflows in India's non-conventional energy sector during Q1, FY25 stood at $1.04 billion, up about 35% annually. In FY24, non-conventional energy, construction and infrastructure were the only sectors to report an annual rise in FDI equity inflows.
According to data from the commerce and industry ministry, total FDI equity inflows into the country's non-conventional energy sector stood at $18.93 billion between April 2000 and June 2024, amounting to about 3% of the total inflows during the period. To be sure, FDI equity inflows in India's non-conventional energy sector surged by about 51% annually in FY24 to $3.76 billion.
The rise in FDI equity inflows into the renewable energy sector comes when such investments have declined in traditionally strong sectors like telecommunications, automobiles and drugs and pharmaceuticals. The total FDI equity flows stood at $44.42 billion in FY24, down from $46.03 billion reported during the previous year.
During the April 2000 and June 202 period, the services sector, which includes financial, banking, insurance, outsourcing, and research & development, reported the highest FDI equity inflows at $113.49 billion, followed by computer hardware and software sectors at $105.63 billion, and the trading sector at $43.86 billion. "In 2023-24, India’s renewable energy sector received $3.7 billion in foreign investment, with around 80% likely used to import
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