US Foreign Direct Investment in India Surges 94% to $47.87 Billion in First Nine Months of Fiscal Year

Foreign Direct Investment in India: April-December 2025-26

Key Highlights

• Foreign direct investment (FDI) in India rose 18% to USD 47.87 billion during April-December 2025-26, compared to USD 40.67 billion in the same period of the previous fiscal year.
• FDI from the US almost doubled to USD 7.80 billion during the first nine months of this fiscal year, up from USD 3.73 billion in the same period of 2024-25.

Quarterly FDI Inflows

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• During the October-December quarter of 2025-26, FDI inflow in equity increased by 17% year-on-year to USD 12.69 billion.
• Total FDI, including equity inflows, reinvested earnings, and other capital, increased by 17.4% to USD 73.31 billion during the first nine months of this fiscal year.

Sector-wise FDI Inflows

• Computer software and hardware received USD 10.7 billion in FDI inflows during April-December this fiscal.
• Services sector received USD 8.42 billion, followed by trading at USD 3.36 billion.

Top Investment Sources

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• Singapore was the largest source of FDI, contributing USD 17.65 billion during the period.
• The US is the third-biggest investor in India, with investments of USD 78.46 billion between April 2000 and December 2025.

State-wise FDI Inflows

• Maharashtra received the highest inflow of USD 15.38 billion during the period.
• Karnataka received USD 11.2 billion, followed by Gujarat at USD 5 billion.

FDI Policy Reforms

• 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.
• Reforms have been undertaken across multiple sectors to liberalise FDI norms, including increased FDI caps in defence, insurance, and pension sectors.