FDI in India Sees Significant Growth in April-September FY26
Foreign direct investment (FDI) in India rose 18% to $35.18 billion during April-September this fiscal year, while the inflow from the US more than doubled to $6.62 billion during the first half of this fiscal, according to government data released on Monday. Foreign Direct Investment (FDI) during April-September FY24 stood at $29.79 billion.
During the June-September quarter of 2025-26, the inflows increased by over 21% year-on-year to $16.55 billion. Total FDI, which includes equity inflows, reinvested earnings and other capital, increased to about $50 billion during the first six months of this fiscal year as against $42.3 billion in the same period of 2024-25.
Country-Wise FDI Inflows
Inflows from the US rose to $6.62 billion during the latest six-month period from $2.57 billion recorded in April-September 2024-25. Singapore was the largest source of FDI during the period, contributing $11.94 billion. It was followed by the US, Mauritius ($3.47 billion), UAE ($2.33 billion), Cayman Islands ($1.83 million), the Netherlands ($1.63 billion), Cyprus ($1.4 billion), and Japan ($1.21 billion).
The US is the third-biggest investor in India with investments of $77.27 billion between April 2000 and September 2025. The top investment source is Singapore ($186.82 billion), followed by Mauritius ($183.66 billion) in the same period. For more information on foreign direct investment, visit our website.
Sector-Wise FDI Inflows
Sector-wise, inflows during April-September this fiscal in computer software and hardware rose to $9 billion, services ($5 billion), trading ($2.78 billion), automobile ($1.57 billion), construction development ($233 million), non-conventional energy ($2 billion) and chemicals ($534 million). To know more about sector-wise FDI, click here.
State-Wise FDI Inflows
Among states, the data showed, Maharashtra received the highest inflow of $10.57 billion during the period. It was followed by Karnataka ($9.4 billion), Tamil Nadu ($3.57 billion), Haryana ($3.22 billion), Gujarat ($2.24 billion), Delhi ($2.3 billion), and Telangana ($1.14 billion). For detailed information on state-wise FDI, visit our website.
The government has put in place an investor-friendly FDI policy, under which most sectors are open for 100% overseas inflows through the automatic route. The government has undertaken reforms across multiple sectors to liberalise FDI norms. Between 2014 and 2019, significant reforms included increased FDI caps in defence, insurance, and pension sectors, and liberalised policies for construction, civil aviation, and single-brand retail trading.
From 2019 to 2024, notable measures included allowing 100% FDI under the automatic route in coal mining, contract manufacturing, and insurance intermediaries. During the last financial year, FDI equity inflows were $50.01 billion, while the overall FDI stood at $80.6 billion. To learn more about FDI policy and its impact on the Indian economy, click here.
Conclusion
The significant increase in FDI inflows in India is a positive sign for the country’s economy. With the government’s efforts to liberalise FDI norms and create an investor-friendly environment, India is expected to attract more foreign investments in the coming years. As an investor, it is essential to stay updated on the latest FDI trends and policies to make informed investment decisions. Visit our website for more information on Indian economy and investment opportunities.