NEW DELHI — India saw a sharp rebound in foreign direct investment during the second quarter of the current fiscal year, with total inflows rising more than 18 percent year-over-year to $35.18 billion for April–September 2025, according to official data released Monday. The country had attracted $29.79 billion during the same period a year earlier.
The momentum was even stronger in the June–September quarter, where investments increased over 21 percent year-over-year to $16.54 billion. FDI equity inflows accounted for more than $16.5 billion during the quarter.
The services sector remained the largest contributor to FDI equity, representing 16 percent of inflows with $5.09 billion. The category includes financial services, banking, insurance, business outsourcing, R&D, courier services, and technology testing and analysis.
A standout trend this fiscal year has been the surge in investment from the United States. U.S. inflows more than doubled to $6.62 billion during April–September, reflecting renewed global investor confidence in the Indian economy.
Maharashtra retained its position as the leading destination for foreign investment, attracting 31 percent of FDI equity inflows at $10.57 billion. Karnataka accounted for 21 percent, while Gujarat captured 15 percent, underscoring the continued dominance of these states in drawing global capital.
The FDI data follows India’s robust GDP performance, with the economy expanding 8.2 percent in the July–September quarter compared with 5.6 percent in the same quarter last year. Growth in the secondary and tertiary sectors — 8.1 percent and 9.2 percent respectively — helped lift real GDP above the 8 percent mark for Q2 FY26.
Manufacturing recorded growth of 9.1 percent, while construction expanded 7.2 percent in the secondary sector. Financial, real estate, and professional services in the tertiary sector grew 10.2 percent year-over-year. (Source: IANS)
