FDI inflows rise 15% in April-June FY26, US investments triple

Foreign Direct Investment (FDI) in India rose 15 per cent to $18.62 billion during April-June of the current fiscal year, up from $16.17 billion in the same period last year, according to government data released on Wednesday. The inflow from the United States nearly tripled to $5.61 billion, making it the largest source of investment in the quarter.
Total FDI — which includes equity inflows, reinvested earnings and other capital — also registered an increase, rising to $25.2 billion from $22.5 billion in April-June 2024-25. In contrast, the previous March quarter had seen inflows fall 24.5 per cent year-on-year to $9.34 billion.
Despite ongoing tariff-related issues, the United States emerged as the top investor during the June quarter with $5.61 billion, nearly triple the inflow of $1.5 billion recorded in the same period last year. It was followed by Singapore ($4.59 billion), Mauritius ($2.08 billion), Cyprus ($1.1 billion), and the UAE ($1 billion), while other significant contributors included the Cayman Islands ($676 million), the Netherlands ($667 million), Japan ($551 million), and Germany ($191 million).Cumulatively, the US has invested $76.26 billion in India between April 2000 and June 2025, ranking it the third-largest source of FDI after Mauritius ($182.2 billion) and Singapore ($179.48 billion).
According to information,the computer software and hardware sector attracted the highest inflows at $5.4 billion, followed by services ($3.28 billion), automobiles ($1.29 billion), and non-conventional energy ($1.14 billion). Other sectors such as trading ($506 million), chemicals ($140 million), telecommunications ($24 million), and construction development ($75 million) also drew investments.Among states, Karnataka received the highest FDI inflow at $5.69 billion, closely followed by Maharashtra with $5.36 billion. Tamil Nadu garnered $2.67 billion, while Gujarat and Haryana received $1.2 billion and $1.03 billion respectively. Delhi attracted $1 billion, and Telangana registered $395 million.
The government has emphasized an investor-friendly FDI policy, keeping most sectors open for 100 per cent overseas investment through the automatic route. Over the years, successive reforms have liberalised FDI norms across key sectors.Between 2014 and 2019, reforms included higher FDI caps in defence, insurance, and pensions, alongside liberalised policies in construction, civil aviation, and single-brand retail. From 2019 to 2024, measures such as allowing 100 per cent FDI in coal mining, contract manufacturing, and insurance intermediaries were introduced.In the 2025 Union Budget, the government proposed raising the FDI limit from 74 per cent to 100 per cent for companies that reinvest their entire premium within India, further signalling its commitment to attract foreign capital.

(Business Correspondent)