Russian Investment in India's Financial Market Growing, 300% Increase in 2024-25 Fiscal Year
New Delhi, March 10 – Russian investment in India has seen a significant increase in the 2024-25 fiscal year, rising by 300% compared to last year, although India’s total Foreign Direct Investment (FDI) inflows have decreased.
According to data presented in the Indian Parliament (Lok Sabha), India’s total FDI inflows from April to December 2024 amounted to $62.48 billion, which is lower than the $71.27 billion recorded in the same period of 2023 and $71.35 billion in 2022.
Meanwhile, Russian investment reached $18.45 million in the 2024-25 fiscal year, a threefold increase from $5.16 million in the previous year. This trend is seen as a reflection of the deepening economic relations between the two countries.
On the other hand, Foreign Portfolio Investment (FPI) has gone through major fluctuations over the past few years. In the 2024-25 fiscal year, there was a net outflow of $1.68 billion in FPI, compared to a net inflow of $41.04 billion in FY24.
The Indian government has taken several policy reforms to attract more FDI. These include allowing 100% FDI under the automatic route in most sectors and reforms in key areas such as defense, telecommunications, e-commerce, civil aviation, pharmaceuticals, insurance, digital media, and coal mining.
Additionally, various steps have been taken to simplify processes for FPI and encourage greater participation from foreign investors. This includes simplifying the onboarding and registration process for FPIs, and increasing participation for NRIs, OCIs, and Indian residents in SEBI-registered FPIs based in India’s International Financial Services Centres (IFSCs).
The Indian government continues to make efforts through its policies and initiatives to make the country attractive to global investors.
