FDI Equity Inflows Jump 18% To $58.84 Billion In FY26

Foreign Direct Investment (FDI) equity inflows into India rose 18 per cent in the financial year 2025–26 to $58.84 billion, according to data released by the Department for Promotion of Industry and Internal Trade (DPIIT). Much of this inflow was driven largely by a sharp jump in inflows from the US. The rise is coming at a time when global investment flows are still uneven, with capital slowly concentrating in faster-growing emerging markets.

US FDI more than doubled during the fiscal year, rising to $11.17 billion from $5.45 billion in FY25.

Overall FDI, which includes equity inflows, reinvested earnings, and other capital, rose 17 per cent to $94.5 billion in FY26. In the January–March quarter alone, equity inflows stood at $10.9 billion, reflecting sustained foreign capital participation even in the later part of the fiscal year.

Singapore remained the largest source of FDI with $19.8 billion, followed by the US. Other key contributors included Mauritius at $6.57 billion, Japan at $3.74 billion, and the Netherlands at $3.37 billion.

On the sectoral front, computer software and hardware attracted the highest inflows at $13.94 billion during April–December FY26. The services sector followed with $10 billion, while trading and non-conventional energy recorded inflows of $4 billion and $3 billion, respectively.

Among states, Maharashtra retained its position as the top recipient of FDI at $18.41 billion, followed by Karnataka with $12.93 billion and Gujarat with $5.71 billion.