According to government data, foreign direct investment (FDI) in India increased by 18 per cent to USD 47.87 billion during April-December 2025-26, while investment from the US doubled to USD 7.80 billion in the first nine months of this financial year. During April-December FY24, foreign direct investment was seen at $40.67 billion. During the October-December 2025-26 quarter, FDI inflows into equities increased by nearly 17 per cent year-on-year to USD 12.69 billion. However, it declined by more than 23 per cent compared to the June-September quarter 2025-26, when the inflow was USD 16.55 billion.
How much FDI came from which country?
Total FDI, which includes equity inflows, reinvested earnings and other capital, increased by 17.4 per cent to USD 73.31 billion in the first nine months of this fiscal year, compared to USD 62.48 billion in the same period of 2024-25. Inflows from the US increased to USD 7.8 billion in the last nine months from USD 3.73 billion in April-December 2024-25. Singapore was the largest source of FDI during this period, contributing USD 17.65 billion.
This was followed by the US, Mauritius (USD 4.83 billion), Japan (USD 3.2 billion), UAE (USD 2.45 billion), Netherlands (USD 2.29 billion), Cayman Islands (USD 1.97 billion), and Cyprus (USD 1.4 billion). The US is the third largest investor in India with investments of USD 78.46 billion between April 2000 and December 2025. The top investment source is Singapore (USD 192.53 billion), followed by Mauritius (USD 185 billion) during the same period.
Which sector gets maximum FDI?
Sector wise, inflows in computer software and hardware increased to USD 10.7 billion during April-December this fiscal year, followed by services at USD 8.42 billion, trading at USD 3.36 billion. While inflows into the non-conventional energy sector stood at USD 2.53 billion, the automobile sector received USD 1.82 billion, construction (infra) activities received USD 2.1 billion, and chemicals received USD 702 million.
The data revealed that among states, Maharashtra received the highest amount at USD 15.38 billion during this period. This was followed by Karnataka (USD 11.2 billion), Gujarat (USD 5 billion), Tamil Nadu (USD 3.89 billion), Haryana (USD 3.84 billion), Delhi (USD 3.52 billion), and Telangana (USD 1.7 billion).
100 percent FDI in many sectors
The government has implemented an investor-friendly FDI policy, under which most sectors are open for 100 percent foreign inflow through the automatic route. The government has made reforms in many sectors to ease FDI rules. Between 2014 and 2019, major reforms included increasing FDI caps in defence, insurance and pension sectors and easing policies for construction, civil aviation and single-brand retail trading.
From 2019 to 2024, key reforms included allowing 100% FDI in coal mining, contract manufacturing and insurance intermediation under the automatic route. In the last financial year, FDI equity inflow was USD 50.01 billion, while total FDI was USD 80.6 billion.