The Key Benefits of Foreign Investment in India
Want to know the benefits of foreign direct investment in India? One of the top chartered accountant firms in Gurgaon is here to guide you. To know more, read the following points:
1. More Economic Growth & Employment
According to the Ministry of Commerce and Industry, in the first half of FY 2024-25, India’s FDI inflows increased by 26%. Increased flow of FDI leads to significant growth in the economic development of India. More investment by foreign entities often leads to higher economic growth, helping to decrease unemployment and boost the Indian economy.
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2. More Advancement in Technology
When foreign companies invest in India, the investment made leads to an inflow of technology, knowledge, and other advancements. India jumped from rank 81 in 2025 to rank 41 in the year 2023 in the Global Innovation Index. This shows the advantages of having foreign investors in India.
3. More Exports
According to the World Investment Report 2023, India became the world's largest receiver of greenfield projects, amounting to over 1008 projects in total. This leads to a continuous flow of foreign exchange due to the increased number of exports over the years, fostering economic growth.