India’s foreign direct investment (FDI) inflows have witnessed a remarkable 45.4% surge in the first half of FY24, reaching USD 29 billion. Even more dazzling is the performance of the gems and jewellery sector, which saw an 84.39% jump in FDI, signalling renewed investor confidence in this crucial industry, reports Dr. Rashmi Arora, Economist, GJEPC along with Reema Thakkar, Asst Manager, Statistics and Research Division, GJEPC.
India recorded a sharp 45.4% increase in overall Foreign Direct Investment (FDI) inflows during April-September 2024, reaching USD 29 billion (INR 2.49 lakh crore), compared to USD 20 billion (INR 1.68 lakh crore) in the same period a year earlier, according to data from the Department for Promotion of Industry and Internal Trade (DPIIT).
The gems and jewellery sector also witnessed an impressive surge in FDI inflows, rising by 84.39% to USD 45.7 million (INR 381.67 crore) during April-September 2024, compared to USD 24.8 million (INR 205.29 crore) in the corresponding period in 2023. This marks a significant recovery in investment inflows into the sector, which had seen a fluctuating trend in recent years.
According to DPIIT data, total FDI equity inflows into India have been on an upward trajectory, increasing from USD 40 billion in 2015-16 to USD 44.42 billion in 2023-24. The latest data indicates strong investor confidence in India’s economic policies and business environment, despite global uncertainties.
| Years | Total FDI Equity inflows (US $ million) |
% Change in FDI Equity inflows (Y-O-Y) |
FDI Inflows in Gems and Jewellery (US$ million) |
FDI inflows in G&J sector % change (Y-O-Y) |
| 2015-16 | 40001 | 75.57 | ||
| 2016-17 | 43478 | 8.69 | 123.91 | 63.97 |
| 2017-18 | 44857 | 3.17 | 233.03 | 88.06 |
| 2018-19 | 44366 | -1.09 | 29.01 | -87.55 |
| 2019-20 | 49977 | 12.65 | 18.87 | -34.95 |
| 2020-21 | 59636 | 19.33 | 13.82 | -26.76 |
| 2021-22 | 58773 | -1.45 | 22.22 | 60.78 |
| 2022-23 | 46034 | -21.67 | 25.50 | 14.76 |
| 2023-24 | 44424 | -3.5 | 37.97 | 48.9 |
| April -Sept 2023 | 20,488.25 | 24.79 | ||
| April -Sept 2024 (2024-25 ) P |
29,790.35 | 45.4 | 45.71 | 84.39 |
Source: GJEPC Analysis based on DPIIT Database, “P” relates to provisional figures
Industry leaders view the sharp increase in FDI inflows as a positive sign of renewed investor interest in India’s jewellery market. The growth aligns with the government’s vision of making India a global hub for jewellery manufacturing and trade.