
FDI Equity Inflows Surge 18 Percent to $58.84 Billion in FY26, with US Investment more than Doubling
Foreign Direct Investment into India Sees Significant Rise in 2025-26
Foreign Direct Investment (FDI) equity inflows into India have experienced a notable increase, rising 18 per cent to $58.84 billion in 2025-26. This surge is characterized by a substantial growth in investments from the United States, which more than doubled during the last fiscal year.
According to data released by the Department for Promotion of Industry and Internal Trade, FDI from the United States rose to $11.17 billion in 2025-26, a significant increase from $5.45 billion in 2024-25. Furthermore, FDI equity investments in the January-March quarter of 2025-26 grew 17.5 per cent to $10.9 billion.
Total FDI, which includes equity inflows, reinvested earnings, and other capital, increased 17 per cent to $94.5 billion. Singapore emerged as the largest source of FDI during the period, contributing $19.8 billion. The United States followed closely, with Mauritius ($6.57 billion), Japan ($3.74 billion), and the Netherlands ($3.37 billion) rounding out the top five sources of FDI.
Read also: India and US Reaffirm Commitment to Conclude Bilateral Trade Agreement
Sector-wise, inflows during April-December this fiscal in computer software and hardware rose to $13.94 billion, followed by the inflow in services at $10 billion, and trading at $4 billion. The non-conventional energy sector also saw significant inflows, standing at $3 billion during the period.
Among states, Maharashtra received the highest inflow of $18.41 billion during the period, followed by Karnataka ($12.93 billion) and Gujarat ($5.71 billion).
Investor Takeaway
FDI equity inflows into India have surged, with the US being a significant contributor.
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