India’s foreign direct investment landscape is witnessing sustained expansion, with inflows on track to reach new highs amid policy support, economic growth and shifting global supply chains.
Gross FDI inflows reached $88.29 billion up to February in FY26, already surpassing the full-year figure of $80.61 billion recorded in FY25. Based on current trends, inflows are expected to cross the $90 billion mark for the year.
Net FDI inflows have also shown a sharp increase, rising to $6.26 billion during the period compared with $959 million in the previous financial year.
Over the past decade, India’s share in global FDI inflows has nearly doubled, reflecting its growing position as a preferred investment destination.
As per news reports, Amardeep Singh Bhatia, Secretary, Department for Promotion of Industry and Internal Trade, said that “India’s investment momentum is a direct outcome of policy clarity, institutional commitment, and the trust global investors place in our systems.” He added that “the $6.1 billion grounded by Invest India…reflects the strength of India’s regulatory environment and the depth of its economic transformation.”
According to Invest India, investments worth over $6.1 billion were facilitated in FY26 through the execution of 60 projects across 14 states. These projects are expected to generate more than 31,000 jobs.
Investments supported through the agency have nearly tripled compared to FY25, with around 42% of the total value originating from European countries.
Key sectors such as chemicals, pharmaceuticals and biotechnology, and food processing together account for about 65% of the total grounded investments, driven by high-value projects aligned with manufacturing and value addition.
Emerging sectors including electronics system design and manufacturing, aerospace and defence, and auto and electric vehicles have also recorded notable activity.
On the regional front, states such as Gujarat, Madhya Pradesh and Andhra Pradesh have emerged as leading investment destinations, supported by proactive policies and infrastructure development.
Bhatia indicated that annual FDI inflows could reach $100 billion by 2030, supported by continued reforms, institutional backing and global supply chain realignments.
The combination of policy measures, sectoral diversification and rising investor confidence suggests that India’s investment momentum is likely to remain strong in the coming years.
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India’s FDI trajectory reflects a steady expansion supported by reforms and global shifts, with rising inflows, stronger project execution and broader sector participation shaping the investment landscape.
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Published on: May 1, 2026, 10:40 AM IST
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