India continued to attract strong long-term foreign investment in FY25, with sovereign wealth funds (SWFs) pouring in a net Rs 8,426 crore. Despite being lower than the previous year&rsquo;s inflows of Rs 47,604 crore, the trend highlights the enduring confidence of global investors in India&rsquo;s growth trajectory.
In FY23, SWF inflows stood at Rs 15,446 crore, while FY22 was the only year in recent times that saw a net outflow of Rs 3,825 crore. Over the last few years, India has emerged as one of the most promising destinations for sovereign and pension funds, thanks to its robust reforms and economic potential.
Between FY22 and FY25, financial services led the way with Rs 28,562 crore, followed by IT at Rs 19,135 crore, healthcare with Rs 7,830 crore, and telecom at Rs 7,053 crore. These sectors underline India&rsquo;s strength in digital infrastructure, innovation, and technology-driven industries.
Experts stress that inflows from sovereign wealth funds are critical as they bring patient, long-term capital that supports infrastructure growth, digital expansion, and economic stability.
The government has actively encouraged such investments through tax exemptions, regulatory easing, and FDI liberalisation. Notably, the Union Budget 2025 raised the FDI cap in insurance to 100% from 74%, while more than 95% of FDI inflows now arrive through the automatic route.
With ongoing reforms and rising investor confidence, India is expected to remain a preferred hub for global sovereign and pension funds in the years to come.
[Except for the headline, this article has not been edited by the Benefit News editorial team and is published directly from the IANS news feed.]
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Sovereign wealth funds invest Rs 8,426 crore in India during FY25, led by finance and IT

SWFs Pump Rs 8,426 Cr Into India in FY25

Sovereign wealth funds invest Rs 8,426 crore in India during FY25, led by finance and IT

August 18, 2025 | 20:46 IST