India FDI rises 18%; US investments nearly double

Foreign direct investment (FDI) into India rose 18 per cent year-on-year to USD 47.87 billion during April–December 2025-26, signalling sustained investor confidence amid global economic uncertainties, according to government data released on Friday.The inflows during the first nine months of FY26 were significantly higher than the USD 40.67 billion recorded in the corresponding period of 2024-25.Total FDI inflows which include equity investments, reinvested earnings and other capital  grew 17.4 per cent to USD 73.31 billion in April–December FY26, compared with USD 62.48 billion in the same period last fiscal.
During the October–December quarter of FY26, FDI equity inflows increased about 17 per cent year-on-year to USD 12.69 billion. However, on a sequential basis, inflows declined over 23 per cent from USD 16.55 billion in the June–September quarter, indicating some moderation in momentum during the third quarter.In the last financial year (2024-25), FDI equity inflows stood at USD 50.01 billion, while total FDI touched USD 80.6 billion.
US Inflows Nearly Double
Investment from the United States almost doubled during April–December FY26, rising to USD 7.80 billion from USD 3.73 billion in the same period last fiscal. The US is the third-largest investor in India, with cumulative investments of USD 78.46 billion between April 2000 and December 2025.Singapore retained its position as the top source of FDI during the period, contributing USD 17.65 billion. It was followed by the US, Mauritius (USD 4.83 billion), Japan (USD 3.2 billion), the United Arab Emirates (USD 2.45 billion), the Netherlands (USD 2.29 billion), the Cayman Islands (USD 1.97 billion), and Cyprus (USD 1.4 billion).Over the longer term, Singapore remains India’s largest FDI source with cumulative investments of USD 192.53 billion since April 2000, followed by Mauritius at USD 185 billion.
Sectoral Distribution
Sector-wise, computer software and hardware attracted the highest inflows at USD 10.7 billion during April–December FY26. The services sector followed with USD 8.42 billion, while trading accounted for USD 3.36 billion.Other major recipients included non-conventional energy (USD 2.53 billion), construction (infrastructure) activities (USD 2.1 billion), the automobile sector (USD 1.82 billion), and chemicals (USD 702 million).The strong inflows into technology and renewable energy sectors reflect continued investor interest in India’s digital economy and clean energy transition.
According to information,among states, Maharashtra emerged as the leading recipient, attracting USD 15.38 billion during the nine-month period. It was followed by Karnataka (USD 11.2 billion), Gujarat (USD 5 billion), Tamil Nadu (USD 3.89 billion), Haryana (USD 3.84 billion), Delhi (USD 3.52 billion), and Telangana (USD 1.7 billion).The government has maintained an investor-friendly FDI regime, allowing 100 per cent foreign investment under the automatic route in most sectors.Between 2014 and 2019, reforms included raising FDI caps in defence, insurance and pension sectors, and liberalising policies for construction, civil aviation and single-brand retail trading.From 2019 to 2024, further measures allowed 100 per cent FDI under the automatic route in coal mining, contract manufacturing and insurance intermediaries.The steady rise in inflows during FY26 suggests that policy continuity, sectoral reforms and India’s expanding domestic market continue to anchor foreign investor interest, even as global capital flows remain volatile.

(Business Correspondent)