FDI in India rose 15 per cent to $18.62 billion during April-June this fiscal year, while the inflow from the US nearly tripled to $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 $16.17 billion. In the March quarter of 2024-25, the inflows fell 24.5 per cent year-on-year to $9.34 billion.
Total FDI, which includes equity inflows, reinvested earnings and other capital, increased to $25.2 billion during the quarter under review against $22.5 billion last year.
During the period, the US emerged as the largest source of FDI with $5.61 billion against $1.50 billion in April-June 2024-25 despite tariff issues. It was followed by Singapore ($4.59 billion), Mauritius ($2.08 billion), Cyprus ($1.1 billion), the UAE ($1 billion), Cayman Islands ($676 million), the Netherlands ($667 million), Japan ($551 million) and Germany ($191 million).
The US is the third-biggest investor in India with investments of $76.26 billion between April 2000 and June 2025. The top investment sources are Mauritius at $182.2 billion and Singapore at $179.48 billion in the same period.
Sectorally, inflows rose in computer software and hardware ($5.4 billion), services ($3.28 billion), trading ($ 506 million), telecommunication ($24 million), automobile ($1.29 billion), construction development ($75 million), non-conventional energy ($1.14 billion) and chemicals ($140 million) during the April-June quarter.
The data also showed that Karnataka received the highest inflow of $5.69 billion during the quarter.
It was followed by Maharashtra ($5.36 billion), Tamil Nadu ($2.67 billion), Haryana ($1.03 billion), Gujarat ($1.2 billion) and Delhi ($1 billion).
The government has put in place an investor-friendly 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.