What Factors Contributed to India’s FDI Surge of 18% to $35.18 Billion in Q2 FY26?
Synopsis
India's foreign direct investment (FDI) experienced a significant rebound in Q2 FY26, with a remarkable increase of 18%, reaching $35.18 billion. This surge is marked by notable contributions from the services sector and a doubling of inflows from the US, indicating strong global investor confidence. Maharashtra remains the top destination for FDI, showcasing India's attractiveness in the global market.
Key Takeaways
FDI inflows rose by 18% to $35.18 billion.
US investments more than doubled to $6.62 billion.
Maharashtra is the leading state for FDI.
Services sector contributed 16% to FDI.
India's GDP growth surged to 8.2% in Q2 FY26.
New Delhi, Dec 1 (NationPress) India has demonstrated a remarkable increase in foreign direct investment (FDI) during the second quarter of the current financial year, with total inflows escalating by over 18% year-on-year to $35.18 billion for the period spanning April to September 2025, as per official statistics released on Monday.
In the same quarter the previous year, the country had drawn in $29.79 billion.
The surge in investments was notably more pronounced, exceeding 21% year-on-year to reach $16.54 billion in the June to September quarter alone. Out of this amount, FDI equity inflows made up over $16.5 million.
When examining contributions by sector, the services industry held the largest share, contributing 16% to FDI equity with inflows amounting to $5.09 billion. This sector encompasses various areas, including financial services, banking, insurance, business outsourcing, R&D, courier services, and technology testing and analysis.
A significant trend noted this fiscal year has been the dramatic increase in inflows from the United States, which more than doubled to $6.62 billion during the April to September period, indicating a renewed global investor confidence in the Indian market.
Maharashtra has maintained its position as the leading destination for foreign investment, capturing 31% of total FDI equity inflows at $10.57 billion.
Karnataka secured a 21% share, while Gujarat accounted for 15%, highlighting the preeminence of these states in attracting global capital.
Previously, India reported an impressive GDP growth rate of 8.2% in the second quarter (July to September) of the current financial year, up from 5.6% during the same quarter of FY 2024-25.
The secondary and tertiary sectors, demonstrating growth rates of 8.1% and 9.2% respectively, have contributed to the real GDP growth rate in Q2 of FY 2025-26 surpassing 8%, as stated in an official release.
In the secondary sector, the manufacturing sector exhibited a robust growth rate of 9.1%, while the construction segment expanded by 7.2% during the quarter.
Moreover, the growth rate in financial, real estate, and professional services within the tertiary sector surged to a double-digit 10.2% in Q2 of FY 2025-26.
Point of View
I affirm that these impressive figures reflect India's growing stature as an investment hub. The robust growth in FDI indicates a positive sentiment among global investors, reinforcing the need for continued policy support and infrastructure development to sustain this momentum.
NationPress
21 Jun 2026
Frequently Asked Questions
What is the total FDI inflow for India in Q2 FY26?
India's total foreign direct investment inflow for Q2 FY26 reached **$35.18 billion**, marking an **18% increase** year-on-year.
Which sector contributed the highest to FDI in India?
The **services sector** contributed the largest share of **16%** to FDI equity, totaling **$5.09 billion**.
How much did US investments in India increase?
Investments from the **United States** more than **doubled**, reaching **$6.62 billion** during April to September 2025.
Which state received the most FDI in India?
Maharashtra emerged as the top destination for foreign investment, accounting for **31%** of total FDI equity inflows.
What was India's GDP growth rate in Q2 FY26?
India reported a GDP growth rate of **8.2%** in the second quarter of the current financial year.
