New Delhi: In a major development, Karnataka witnessed foreign direct investment (FDI) inflows nearly double to USD 13 billion during the last financial year.
It is important to note that tech investors and Global Capability Centres (GCCs) increasingly moved to India’s Silicon Valley during the same period. Meanwhile, Maharashtra recorded a decline in inflows after two consecutive years of growth.
The DK Shivakumar-led Karnataka received USD 12.94 billion in FDI during FY26, almost doubling its inflows from the previous year. Its share of India’s FDI rose to 21.99 percent, making it the second-largest recipient after Maharashtra.
According to the latest official data shared in Parliament on Tuesday, Haryana, Tamil Nadu, Rajasthan, Uttar Pradesh, Andhra Pradesh, and Punjab were among states that saw a significant increase in equity inflows, while Telangana saw a decline. Gujarat was flat at $5.7 billion, also retaining the third spot among states.
Here are some of the key details:
- Maharashtra remained India’s biggest FDI destination
- The state attracted $18.42 billion in FY26.
- The state accounted for 31.3 percent of India’s total FDI equity inflows, maintaining its leadership for another year.
- Union Territories and the “Others” category together attracted USD 6.37 billion, accounting for 10.82 percent of total FDI equity inflows.
- Gujarat received USD 5.71 billion in FY26, broadly unchanged from the previous year.
- Tamil Nadu attracted USD 4.72 billion in FDI during FY26.
- Its share of national FDI increased to 8.03 percent, the highest for the state during the six-year period covered in the reply.
- Haryana recorded USD 4.53 billion in FDI equity inflows, with its share of total inflows rising to 7.69 percent.
- Telangana received USD 2.25 billion in FY26.
- Rajasthan crossed the USD 1 billion mark in FY26, attracting $1.009 billion in FDI equity inflows
It is also important food processing industry witnessed FDI spike nearly six times to USD 3 billion, while others like drugs and pharmaceuticals (USD 1.9 billion), automobile industry (USD 2.5 billion) and education (USD 1.3 billion) also saw robust growth. Meanwhile, FDI in air transport fell nearly 70 percent to USD 383 million, whereas the electronics sector saw FDI nearly halve to USD 1.1 billion.