India's Gross Investment Inflows Remain Steady at 18.5% of GDP in FY25: Chief Economic Adviser Nageswaran

India Attracts Steady Capital Inflows Amid Global Volatility

Key Figures:

• Gross investment inflows: 18.5% of GDP in FY25 and 16.9% in the first half of FY26
• FDI inflows: 2% dip in calendar 2024, with India posting a modest decline compared to other emerging markets

Overview

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India's Chief Economic Adviser, Dr. V. Anantha Nageswaran, highlighted the country's ability to attract steady capital inflows despite global economic tightening. According to the data, gross investment inflows reached 18.5% of GDP in FY25 and stood at 16.9% in the first half of FY26.

India's Structural Improvements

Nageswaran emphasized that India's institutional reforms are paying off, citing the country's ability to draw steady capital even as global investors become more discerning. The key drivers behind India's success include:

• Stronger microeconomic stability
• Better governance and transparency
• Sharply lower transaction costs
• Digital public infrastructure and deeper domestic capital markets

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Global Market Trends

In contrast to other emerging markets, India's FDI inflows declined by only 2% in calendar 2024, maintaining its position as South Asia's top gross FDI recipient. Nageswaran attributed the resilience to India's ability to combine macroeconomic stability with geopolitical alignment and technological readiness, making it an attractive destination for investors.

Impact of Global Volatility

The current global market landscape is being reshaped by the simultaneous forces of geopolitics and technological acceleration. However, India's structural progress has kept its inflows resilient, offering a counter-narrative to broader volatility.