Synopsis: In FY 26, India has received its largest ever Foreign Direct Investment (FDI) equity inflow of USD 58.85 billion. According to DPIIT, this was as a result of strong foreign investment in technology, services, manufacturing, infrastructure and renewable energy industries, and Singapore still remains as the top foreign investor.
India’s economic growth, digitalisation, and robust infrastructure and manufacturing growth kept further strengthening its attractiveness as an investment destination in FY 2025-26. According to DPIIT data, India attracted USD 58.85 billion in FDI equity inflows, the highest so far in the nation’s history, reflecting the confidence investors have in India’s future.
India’s FDI Snapshot
Since April 2000, India has attracted a cumulative FDI inflow of USD 1.166 trillion including reinvested earnings, other capital and equity flows. Of this amount, USD 787.73 billion was in the form of equity flows from FDI. The FDI equity inflows to India have increased by an impressive 18% from USD 50.02 billion in FY 2024-25 to USD 58.85 billion in FY 2025-26.
Singapore Continues to Lead FDI Inflows
Singapore remained India’s largest source of FDI during FY 2025-26, contributing nearly one-third of total equity inflows, with an estimated total of ₹1.74 lakh crores (around $19.86 billion) or about 33% of all equity FDI inflows received for the fiscal year FY 2025-26.
The second-largest source of capital, after the USA, was inflows of ₹98,012 crores ($11.17 billion) in the 2025-26 fiscal year. There is currently increasing U.S. company investment interest in India particularly in the technology sector, manufacturing sector, and financial services sector. Although Mauritius was the main investment channel to India, other key investors included Japan, the Netherlands, and the United Arab Emirates (UAE) for investments in infrastructure, manufacturing, and technology sectors respectively.
Top Investing Countries in India (April 2025 – March 2026)
Source: DPIIT, March 2026
Technology Sector Emerges as the Biggest Magnet for Foreign Capital
The Computer Software & Hardware sector was the highest at ₹1.22 lakh crores (USD 13.95 billion) for FY 2025-26. Continued expansion of the digital economy, AI ecosystem, investments in cloud infrastructure, and the booming technology services industry in India are keeping global investors engaged. Services continued to be the second most important destination for FDI, with financial services, banking, insurance, outsourcing, research and development and business services. There was also a considerable foreign investment in renewable energy, with global investors further capitalizing on India’s clean energy transition and net-zero ambitions.
Top Sectors Attracting FDI Equity Inflow in FY 2025-26 (April 2025 – March 2026)
Source: DPIIT, March 2026
FY26 Data Reveals About Investor Preferences
The FY26 numbers show that technology and services continue to attract the bulk of foreign investment into India. The robust investment inflows in renewable energy, infrastructure, automobiles, pharmaceuticals suggest investor’s confidence and conviction in India’s manufacturing story, transition to clean energy, and the domestic consumption story. Strong inflows from Singapore, the US, Mauritius, Japan and the UAE indicate that global investors continue to view India as a long-term growth market.
- USD 58.85 billion worth of FDI equity inflow was received in FY26, a record-high amount.
- Inflows of FDI equity rose 18% YoY.
- Since April 2000, India has been receiving an FDI inflow of USD 1.166 trillion.
- Singapore continued to be the biggest investor, receiving USD 19.8 billion.
- The next largest was the U.S. with USD 11.17 billion.
- The sector that recorded the highest FDI was Computer Software & Hardware with USD 13.95 billion.
- Foreign investment to the service sector amounted to more than USD 10 billion in FY26.
Bottom line
Foreign Direct Investment (FDI) into India hit a record of USD 58.85 billion for the fiscal year ending March 2026 indicating that foreign direct investment is one of the major contributors to sustaining continued confidence in the long-term growth potential of India, as well as in that country as an investment destination. The three largest sources of FDI into India were Singapore, the U.S., and Mauritius.
