Why Are Maharashtra and Karnataka Leading India's Record FDI Growth in FY25?
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Synopsis
Discover how Maharashtra and Karnataka have become the frontrunners in attracting foreign direct investment in India for FY25, capturing over half of the nation's total inflows. This significant achievement underscores the improving infrastructure and business-friendly policies in these states.
Key Takeaways
- Maharashtra and Karnataka lead India's FDI, capturing 51% of total inflows.
- Total FDI inflows for FY25 reached $81.04 billion, a 14% YoY increase.
- Maharashtra attracted $19.6 billion in FDI, while Karnataka secured $6.62 billion.
- FDI now comes from 112 countries, reflecting global confidence in India's economy.
- Policy reforms and infrastructure improvements drive investment growth.
New Delhi, June 8 (NationPress) Maharashtra and Karnataka have emerged as the premier destinations for foreign direct investment (FDI) in India for the financial year 2024–25, collectively contributing to 51 percent of the total inflows, as per the recent data from the Department for Promotion of Industry and Internal Trade (DPIIT).
Maharashtra secured the highest FDI, with overseas investments reaching $19.6 billion, accounting for 31 percent of the nation’s total.
Karnataka followed closely with $6.62 billion in foreign investments. Analysts credit the robust performance of both states to ongoing enhancements in infrastructure and investment-friendly policies.
Delhi ranked third, attracting $6 billion, followed by Gujarat with $5.71 billion. Tamil Nadu, Haryana, and Telangana also reported steady FDI inflows of $3.68 billion, $3.14 billion, and $3 billion, respectively.
India’s total FDI inflows have risen by 14 percent year-on-year (YoY), reaching $81.04 billion in FY25, marking the highest level in the past three years.
In contrast, the total FDI for FY24 was $71.3 billion, including equity inflows, reinvested earnings, and other capital components.
Commerce and Industry Minister Piyush Goyal recently noted that India’s FDI now comes from 112 countries, a significant increase from 89 in the 2013–14 period.
During an investor roundtable at Vanijya Bhawan in the national capital, he emphasized that this surge indicates an increasing global confidence in India's economic trajectory and the effectiveness of policy reforms.
"India’s FDI narrative transcends mere statistics. It embodies our enduring policy clarity, our dedication to simplifying business operations, and the global faith in India’s potential," the minister stated.
This week’s roundtable featured over 90 participants, including key industry stakeholders and representatives from more than 50 industrial parks across states such as Maharashtra, Delhi, Gujarat, Karnataka, and Tamil Nadu.
DPIIT Secretary Amardeep Singh Bhatia also highlighted the crucial role of FDI as a cornerstone of India’s growth.
Point of View
It is evident that the remarkable FDI growth in Maharashtra and Karnataka reflects a robust commitment to fostering a favorable investment climate. The increasing influx of foreign capital into India highlights the nation's growing appeal on the global stage, affirming the effectiveness of recent policy reforms and infrastructure enhancements.
NationPress
08/06/2025
Frequently Asked Questions
Which states are leading in FDI in India for FY25?
Maharashtra and Karnataka are the top states for FDI in India, collectively accounting for 51 percent of total inflows.
What was the total FDI inflow for India in FY25?
India's total FDI inflows reached $81.04 billion in FY25, marking a 14 percent increase year-on-year.
How much FDI did Maharashtra attract in FY25?
Maharashtra attracted $19.6 billion in foreign direct investment, which is 31 percent of India's total FDI.
What are the factors contributing to FDI growth in these states?
The growth is attributed to continuous improvements in infrastructure and investment-friendly policies in both states.
From how many countries does India receive FDI?
India now receives FDI from 112 countries, an increase from 89 in the 2013-14 period.
