India’s FDI jumps 18 pc to $35.18 billion in Q2 FY26, US inflows more than double

New Delhi, Dec 1 India recorded a strong rebound in foreign direct investment (FDI) in the second quarter of the current financial year, with total inflows rising over 18 per cent year-on-year to $35.18 billion during April–September 2025, according to official data released on Monday.

The country had attracted $29.79 billion in the corresponding quarter a year ago.

The pick-up in investments was sharper at more than 21 per cent YoY to $16.54 billion in the June–September quarter alone. Of this, FDI equity inflows accounted for over $16.5 million.

Sector-wise, services contributed the highest share of 16 per cent to FDI equity with inflows of $5.09 billion. The services segment includes financial services, banking, insurance, business outsourcing, R&D, courier service, and technology testing and analysis.

A marked trend this fiscal has been the spurt in inflows from the US, which more than doubled to $6.62 billion during April–September, signalling renewed global investor confidence in the Indian market.

Maharashtra retained its lead as the top destination for foreign investment, cornering 31 per cent of total FDI equity inflows at $10.57 billion.

While Karnataka accounted for a 21 per cent share, Gujarat accounted for 15 per cent to underline the dominance of these states in attracting global capital.

Earlier, India reported robust GDP growth at 8.2 per cent in the second quarter (July-September) of the current financial year compared to the corresponding figure of 5.6 per cent during the same quarter of FY 2024-25.

The secondary and tertiary sectors, with growth rates of 8.1 per cent and 9.2 per cent, respectively, have boosted the real GDP growth rate in Q2 of FY 2025-26 to rise above 8 per cent, an official statement said.

The manufacturing sector clocked a strong growth rate of 9.1 per cent, while the construction segment grew at 7.2 per cent in the secondary sector during the quarter.

The growth rate of the financial, real estate and professional services in the tertiary sector jumped by a double-digit 10.2 per cent in Q2 of FY 2025-26.

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