India — FDI inflows (% of GDP)

## What this measures

This measures net inflows of foreign direct investment into India as a share of the country's GDP. It reflects the annual value of cross-border equity investments, reinvested earnings, and intra-company loans from foreign entities acquiring lasting management interest in Indian enterprises.

## Why it matters

FDI inflows signal investor confidence in a country's growth prospects, regulatory environment, and political stability. They fund capacity expansion, technology transfer, and infrastructure, which can reshape supply chains and competitive dynamics for firms operating in or sourcing from India. Sustained changes in this ratio indicate shifts in India's role in global capital allocation and production networks.

## How to read it

A rising share indicates India is attracting more foreign capital relative to the size of its economy, suggesting stronger investor appetite or improved conditions for cross-border investment. A falling share may reflect capital reallocation to other markets, policy headwinds, or simply faster GDP growth. Compare changes over multiple years to separate structural trends from one-time project flows.

## What it does not say

This does not break down which sectors, source countries, or types of projects drive the flows. It does not indicate whether the capital finances greenfield projects, acquisitions, or expansions, nor does it capture portfolio investment or debt flows.

## Source

Palanor pulls World Bank Open Data through its API monthly under a CC BY 4.0 license. The underlying indicator is BX.KLT.DINV.WD.GD.ZS.