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India's FDI Surges 18% to $35.18 Billion in First Half of FY26 with US Investment Doubling

Foreign Direct Investment in India has grown by 18% to $35.18 billion during April-September of the current fiscal year, with US investments more than doubling to $6.62 billion. Singapore remains the largest source of FDI at $11.94 billion, while Maharashtra tops the list of recipient states with $10.57 billion in inflows. The government's investor-friendly policies continue to attract substantial foreign capital across multiple sectors.
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Foreign Direct Investment In India Jumps 18% In First Half Of FY26

India has witnessed a significant 18 percent increase in Foreign Direct Investment (FDI), reaching USD 35.18 billion during the April-September period of the current fiscal year, compared to USD 29.79 billion in the same period of FY24.

The June-September quarter of 2025-26 showed remarkable growth with inflows rising by over 21 percent year-on-year to USD 16.55 billion.

Total FDI, encompassing equity inflows, reinvested earnings, and other capital, climbed to approximately USD 50 billion in the first half of this fiscal year, up from USD 42.3 billion recorded in the corresponding period of 2024-25.

Investment from the United States more than doubled to USD 6.62 billion during this six-month period, compared to USD 2.57 billion in April-September 2024-25.

Singapore maintained its position as the largest FDI source with contributions of USD 11.94 billion. Following Singapore were the US, Mauritius (USD 3.47 billion), UAE (USD 2.33 billion), Cayman Islands (USD 1.83 million), the Netherlands (USD 1.63 billion), Cyprus (USD 1.4 billion), and Japan (USD 1.21 billion).

Historically, the US ranks as the third-largest investor in India with total investments of USD 77.27 billion between April 2000 and September 2025. Singapore leads with USD 186.82 billion, followed by Mauritius with USD 183.66 billion during the same timeframe.

Sector-wise analysis shows computer software and hardware attracted USD 9 billion during April-September this fiscal, while services sector received USD 5 billion. Other significant sectors included trading (USD 2.78 billion), automobile (USD 1.57 billion), non-conventional energy (USD 2 billion), chemicals (USD 534 million), and construction development (USD 233 million).

Maharashtra emerged as the top destination state, securing USD 10.57 billion in FDI during this period. Other states with substantial inflows included Karnataka (USD 9.4 billion), Tamil Nadu (USD 3.57 billion), Haryana (USD 3.22 billion), Gujarat (USD 2.24 billion), Delhi (USD 2.3 billion), and Telangana (USD 1.14 billion).

India's government has established an investor-friendly FDI policy framework that allows 100 percent overseas investments through the automatic route in most sectors.

Between 2014 and 2019, the government implemented significant reforms including increased FDI caps in defence, insurance, and pension sectors, along with liberalized policies for construction, civil aviation, and single-brand retail trading.

From 2019 to 2024, notable policy changes included permitting 100 percent FDI under the automatic route in coal mining, contract manufacturing, and insurance intermediaries.

During the previous financial year, India received USD 50.01 billion in FDI equity inflows, while overall FDI amounted to USD 80.6 billion.

Source: https://www.ndtv.com/india-news/foreign-direct-investment-in-india-jumps-18-in-first-half-of-fy26-9732574