FDI Equity Inflows Jump 18% to $58.84 Billion in FY26, US Investment More Than Doubles

India's appeal as a global investment destination strengthened significantly in 2025-26, with Foreign Direct Investment (FDI) equity inflows rising 18 per cent to USD 58.84 billion , reflecting growing international confidence in the country's economic prospects and business environment.

Data released by the Department for Promotion of Industry and Internal Trade (DPIIT) showed that foreign investments gained momentum across key sectors, while investment from the United States more than doubled during the fiscal year. FDI from the US surged to USD 11.17 billion , compared with USD 5.45 billion in the previous year, highlighting deepening economic and business ties between the world's two largest democracies.

The latest figures indicate that India's efforts to improve ease of doing business, expand digital infrastructure, and strengthen manufacturing and services ecosystems continue to attract global capital. During the January-March quarter alone, FDI equity inflows rose 17.5 per cent to USD 10.9 billion , underscoring sustained investor interest despite global economic uncertainties.

When broader investment components such as reinvested earnings and other capital are included, total FDI inflows increased 17 per cent to USD 94.5 billion , marking another strong year for foreign investment.

Singapore remained India's largest source of FDI , contributing USD 19.8 billion during the fiscal year. The US emerged as the second-largest investor, followed by Mauritius (USD 6.57 billion), Japan (USD 3.74 billion) and the Netherlands (USD 3.37 billion).

Sector-wise, the technology segment continued to dominate foreign investor interest. Computer software and hardware attracted USD 13.94 billion , making it the biggest recipient of overseas capital. The services sector received USD 10 billion , while trading accounted for USD 4 billion in inflows. Investments in non-conventional energy reached USD 3 billion , reflecting increasing global interest in India's renewable energy ambitions and clean energy transition.

Among states, Maharashtra retained its position as the leading investment destination, attracting USD 18.41 billion in FDI inflows. Karnataka followed with USD 12.93 billion , benefiting from its strong technology ecosystem, while Gujarat secured USD 5.71 billion , supported by its industrial and manufacturing base.

The robust inflow numbers underline India's growing stature in the global investment landscape, with foreign investors continuing to view the country as a key long-term growth market amid shifting global economic dynamics.