India recorded a 15% rise in Foreign Direct Investment (FDI) during April–June FY25, with inflows reaching USD 18.62 billion, according to data released by the government on Wednesday.
This surge reflects a rebound in investor sentiment, especially from the United States, which contributed USD 5.61 billion—almost triple the amount recorded in the same period last year—despite ongoing tariff issues.
Total FDI, which includes equity inflows, reinvested earnings, and other capital components, rose to USD 25.2 billion in the quarter under review, compared to USD 22.5 billion in the same period of FY24.
The US led the list of top investing countries during the quarter, followed by Singapore (USD 4.59 billion), Mauritius (USD 2.08 billion), Cyprus (USD 1.1 billion), UAE (USD 1 billion), Cayman Islands (USD 676 million), Netherlands (USD 667 million), Japan (USD 551 million), and Germany (USD 191 million).
Since April 2000, the US has invested a total of USD 76.26 billion in India, making it the third-largest investor after Mauritius (USD 182.2 billion) and Singapore (USD 179.48 billion).
Sector-wise, the computer software and hardware segment attracted the highest FDI at USD 5.4 billion, followed by services (USD 3.28 billion), automobiles (USD 1.29 billion), non-conventional energy (USD 1.14 billion), trading (USD 506 million), chemicals (USD 140 million), construction development (USD 75 million), and telecommunications (USD 24 million).
Among states, Karnataka emerged as the top destination for FDI during the April–June quarter, receiving USD 5.69 billion.
Maharashtra followed closely with USD 5.36 billion, while Tamil Nadu (USD 2.67 billion), Gujarat (USD 1.2 billion), Haryana (USD 1.03 billion), Delhi (USD 1 billion), and Telangana (USD 395 million) also featured among the top recipients.
The government credited the rise in inflows to investor-friendly policies and structural reforms.
Under the current FDI framework, most sectors are open for 100% overseas investment through the automatic route.
Between 2014 and 2019, the government raised FDI caps in defence, insurance, and pensions, and liberalised rules for aviation, retail, and construction.
From 2019 to 2024, key reforms included permitting 100% FDI in coal mining, contract manufacturing, and insurance intermediaries.
The 2025 Union Budget proposed raising the FDI cap from 74% to 100% for firms investing all premium receipts within India.
In FY24, India received USD 50.01 billion in equity FDI, with total FDI inflows reaching USD 80.6 billion.
With robust policy support and rising international interest, India remains a preferred investment destination despite global uncertainties.
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