New Delhi: FDI in India rose 15 per cent to USD 18.62 billion during April-June this fiscal year, while the inflow from the US nearly tripled to USD 5.61
billion during the quarter despite tariff issues, according to government data released on Wednesday.
Foreign Direct Investment (FDI) during April-June FY25 stood at USD 16.17 billion. In March quarter 2024-25, the inflows fell 24.5 per cent year-on-year to USD 9.34 billion.
Total FDI, which includes equity inflows, reinvested earnings and other capital, increased to USD 25.2 billion during the quarter under review as against USD 22.5 billion in the same period of 2024-25.
During the period, the US emerged as the largest source of FDI with USD 5.61 billion as against USD 1.50 billion in April-June 2024-25 despite tariff issues.
It was followed by Singapore (USD 4.59 billion), Mauritius (USD 2.08 billion), Cyprus (USD 1.1 billion), the UAE (USD 1 billion), Cayman Islands (USD 676 million), the Netherlands (USD 667 million), Japan (USD 551 million), and Germany (USD 191 million).
The US is the third-biggest investor in India with investments of USD 76.26 billion between April 2000 and June 2025. The top investment sources are Mauritius at USD 182.2 billion and Singapore at USD 179.48 billion in the same period.
Sectorally, inflows rose in computer software and hardware (USD 5.4 billion), services (USD 3.28 billion), trading (USD 506 million), telecommunication (USD 24 million), automobile (USD 1.29 billion), construction development (USD 75 million), non-conventional energy (USD 1.14 billion) and chemicals (USD 140 million) during April-June quarter.
The data also showed that Karnataka received the highest inflow of USD 5.69 billion during the quarter.
It was followed by Maharashtra (USD 5.36 billion), Tamil Nadu (USD 2.67 billion), Haryana (USD 1.03 billion), Gujarat (USD 1.2 billion), Delhi (USD 1 billion), and Telangana (USD 395 million).
The government has put in place an investor-friendly Foreign Direct Investment (FDI) policy, under which most sectors are open for 100 per cent overseas inflows through the automatic route.
The government has undertaken reforms across multiple sectors to liberalise FDI norms. Between 2014 and 2019, significant reforms included 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 per cent 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 per cent to 100 per cent for companies investing their entire premium within India.
In the whole of last financial year the FDI equity inflows were USD 50.01 billion while overall FDI stood at USD 80.6 billion.
