FDI Trends in India | 10 Jan 2026

Source: BL

According to the Department for Promotion of Industry and Internal Trade (DPIIT), India witnessed a strong rise in foreign direct investment (FDI) during the first half (H1) of FY26 (April-September 2025), driven primarily by a doubling of inflows into the IT sector.

• FDI Inflows: FDI inflows rose to USD 35.2 billion in H1 FY26, marking an 18% increase over USD 29.8 billion in H1 FY25. From April 2000–September 2025, cumulative FDI inflows reached USD 1.12 trillion. 
• Top Investing Nations: Singapore led with USD 12 billion in FDI, accounting for 34% of the total, followed by the US (USD 6.6 billion) and Mauritius (USD 3.5 billion).
• State-wise Inflows: Maharashtra remained the top FDI recipient with about 30% share. Karnataka (USD 9.4 bn) and Tamil Nadu (USD 3.6 bn) were the 2nd and 3rd largest recipients, while Gujarat’s share fell to 6.4%.
• Leading Sectors: The services sector and computer software & hardware each account for 16% of cumulative equity inflows, with significant contributions from trading (6%), telecommunications (5%), and automobiles (5%).
• Policy Enablers: Reforms such as raising the FDI cap in insurance to 100%, implementation of GST, and development of Special Economic Zones (SEZs) have bolstered India’s investment ecosystem.