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FDI equity inflow in India rises 15% to $18.62 billion in April-June FY26
Sep-04-2025

The government data has showed that Foreign Direct Investments (FDI) equity inflow in India increased by 15% to $18.62 billion during April-June period of this fiscal year (FY26), as compared to $16.17 billion in the same period of last fiscal. In March quarter 2024-25, the inflows fell 24.5% year-on-year to $9.34 billion. FDI inflows from the US nearly tripled to $5.61 billion during the April-June quarter as against $1.50 billion in April-June 2024-25 despite tariff issues. Further, the total FDI, which includes equity inflows, reinvested earnings and other capital, increased to $25.2 billion during the quarter under review as against $22.5 billion in the same period of 2024-25. 

The data showed that after US, the Singapore was the second largest source of FDI with $4.59 billion followed by Mauritius with $2.08 billion, Cyprus with $1.1 billion, the UAE with $1 billion, Cayman Islands with $676 million, the Netherlands with $667 million, Japan with $551 million and Germany with $191 million. On the sectoral front, computer software and hardware received FDI inflows worth $5.4 billion, services received $3.28 billion, trading received $506 million, telecommunication received $24 million, automobile received $1.29 billion, construction development received $75 million, non-conventional energy $1.14 billion and chemicals received $140 million during April-June quarter. The data also showed that Karnataka received the highest inflow of $5.69 billion during the quarter.

The government has put in place an investor-friendly FDI policy, under which most sectors are open for 100% overseas inflows through the automatic route. The government has undertaken reforms across multiple sectors to liberalise FDI norms. During 2014 to 2019, the government had undertaken significant reforms including increased FDI caps in defence, insurance, and pension sectors, and liberalised policies for construction, civil aviation, and single brand retail trading. From 2019 to 2024, notable measures included allowing 100% FDI under the automatic route in coal mining, contract manufacturing, and insurance intermediaries. In 2025, the Union Budget proposed increasing the FDI limit from 74% to 100% for companies investing their entire premium within India.

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