Background: Foreign Direct Investment (FDI) has been a cornerstone of India's external sector liberalisation strategy since the 1991 economic reforms, and the decade 2015–2025 witnessed unprecedented policy liberalisation through initiatives such as Make in India, the Production Linked Incentive (PLI) scheme, and progressive expansion of the automatic approval route. Despite cumulative FDI inflows crossing US$1.14 trillion since April 2000, persistent concerns remain regarding the sectoral concentration of inflows in services-oriented and capital-light industries, and the regional concentration of investment in a handful of already-industrialised states.

Objectives: This study examines: (1) the trend and magnitude of FDI equity inflows into India during the period FY2015–16 to FY2024–25; (2) the sectoral composition and shifting preferences of foreign investors across this decade; (3) the regional/state-wise concentration of FDI and its implications for balanced regional development; and (4) the country-wise sources of FDI and their policy and taxation drivers.

Methods: The study employs a descriptive-analytical research design based on secondary data obtained from the Department for Promotion of Industry and Internal Trade (DPIIT), Reserve Bank of India (RBI) bulletins, UNCTAD World Investment Reports, and the India Brand Equity Foundation (IBEF). Compound Annual Growth Rate (CAGR), sectoral concentration indices, and the Herfindahl-Hirschman Index (HHI) were computed to quantify trends and concentration patterns across sectors, states, and source countries for the period FY2015–16 to FY2024–25.

Results: India's annual FDI equity inflows grew from approximately US$40.0 billion in FY2015–16 to a peak of US$84.8 billion in FY2021–22, before moderating to US$71.3 billion (FY2023–24) and recovering to US$81.0 billion (FY2024–25) — a CAGR of approximately 7.3% over the decade. The Services sector, Computer Software and Hardware, Trading, Telecommunications, and Automobile Industry collectively accounted for over 45% of cumulative inflows. The Computer Software and Hardware sector alone surged from a single-digit share in FY2015–16 to becoming the leading sectoral recipient by FY2024–25, reflecting the Digital India and Global Capability Centre (GCC) boom. Regionally, Maharashtra, Karnataka, Delhi, Gujarat, and Tamil Nadu jointly captured over 70% of cumulative state-wise FDI inflows, with Maharashtra alone attracting approximately 31–39% of national inflows in FY2024–25, while eastern, north-eastern, and several central Indian states collectively received less than 5%. Singapore and Mauritius remained the dominant source jurisdictions, together contributing approximately 45–50% of cumulative equity inflows, primarily due to favourable Double Taxation Avoidance Agreement (DTAA) provisions.