FDI inflows into India in FY 2025-26: top sectors, source countries and states

How much FDI did India receive in FY 2025-26?

DPIIT's quarterly fact sheet for the period to March 2026 reports total FDI inflows of US$94,527 million in FY 2025-26, against US$80,615 million in FY 2024-25. Total FDI includes equity inflows, reinvested earnings and other capital. FDI equity inflows alone were US$58,846 million (₹5,16,936 crore), up 18% in dollar terms from US$50,018 million (₹4,21,929 crore). All figures are provisional.

Cumulatively, India has received US$1,166,462 million in total FDI and US$787,728 million in FDI equity since April 2000. Some media reports described FY 2025-26 FDI as US$58.85 billion; that is the equity figure, not total FDI.

In rupee terms, FDI equity grew faster than in dollars: about 22.5%, from ₹4,21,929 crore to ₹5,16,936 crore, because the rupee weakened against the dollar over the year. Growth figures quoted in either currency are correct, but compare them consistently.

Which countries invested the most in India?

Singapore was the largest source of FDI equity at US$19,802 million, about a third of the year's total and 33% higher than its FY 2024-25 figure of US$14,942 million. The USA more than doubled its investment to US$11,171 million from US$5,457 million, moving to second place. Mauritius fell to third at US$6,576 million from US$8,344 million.

Japan (US$3,745 million), the Netherlands (US$3,374 million) and the UAE (US$2,738 million) followed. The Cayman Islands rose sharply to US$2,084 million from US$371 million. Country figures reflect the immediate source of funds, so investment routed through holding companies in Singapore, Mauritius or the Netherlands often originates elsewhere.

Which sectors attracted the most FDI?

Computer software and hardware was the largest recipient at US$13,946 million, about 24% of equity inflows and up from US$7,814 million a year earlier. The services sector (financial, banking, insurance, outsourcing, R&D and others as DPIIT classifies it) drew US$10,010 million. Trading took US$4,011 million, non-conventional energy US$3,019 million and construction (infrastructure) activities US$2,574 million.

Among other notable movers, the automobile industry rose to US$2,459 million and drugs and pharmaceuticals more than doubled to US$1,912 million, while telecommunications fell to US$118 million from US$746 million.

Software and services together took about 41% of all FDI equity in FY 2025-26. That concentration matters for founders: most technology and services companies can accept foreign equity under the automatic route, so the main hurdles are pricing guidelines, documentation and timely RBI reporting rather than approvals.

Which states received the most FDI?

DPIIT attributes FDI equity to states based on the location of the investee company as reported to RBI. Maharashtra received US$18,418 million (about 31%), slightly lower than US$19,589 million in FY 2024-25. Karnataka nearly doubled to US$12,939 million, helped by the software surge. Delhi (US$6,182 million), Gujarat (US$5,713 million) and Tamil Nadu (US$4,724 million) completed the top five. Haryana rose to US$4,526 million, and Rajasthan and Uttar Pradesh each roughly doubled from small bases.

Which states gained and lost FDI?

Karnataka was the big gainer, with FDI equity almost doubling from US$6,619 million to US$12,939 million, consistent with the jump in software inflows. Tamil Nadu (up 28%), Haryana (up 44%), Rajasthan and Uttar Pradesh also rose. Maharashtra slipped about 6% but remained the largest destination by a wide margin, while Telangana fell from US$2,994 million to US$2,253 million.

State figures depend on where the investee company is located, so a Bengaluru-headquartered group raising money at its holding company shows up entirely in Karnataka even if operations are spread nationally.

Who are India's largest investors over the long run?

Cumulative FDI equity from April 2000 to March 2026 stands at US$787,728 million (₹52,85,866 crore), excluding NRI scheme remittances. Singapore leads with US$194,688 million, narrowly ahead of Mauritius at US$186,767 million, with the USA third at US$81,821 million. Mauritius was the top source for much of the 2000s and 2010s, and its slide in FY 2025-26 continues a long trend following amendments to the India-Mauritius tax treaty.

Total FDI, including reinvested earnings and other capital, has crossed US$1.16 trillion cumulatively since 2000. Reinvested earnings by foreign-owned companies in India are a large and growing part of each year's total.

What does this mean for foreign companies entering India?

Most FDI in services, software and trading comes in under the automatic route, where no prior government approval is needed, subject to sectoral caps and conditions. Investors from countries sharing a land border with India need government approval under Press Note 3 (2020). Every equity issue to a foreign investor must be reported to RBI in Form FC-GPR within 30 days of allotment, and transfers between residents and non-residents in Form FC-TRS.

Indian companies and LLPs with foreign investment also file the annual return on Foreign Liabilities and Assets (FLA) with RBI by 15 July each year, and branch, liaison and project offices of foreign companies have their own annual filings with RBI and the Registrar.