Maharashtra, Karnataka drive India’s FDI surge with 51pc share in FY25

THEBUSINESSBYTES BUREAU

NEW DELHI, JUNE 8, 2025

Maharashtra and Karnataka emerged as the top magnets for foreign investment in India during the financial year 2024-25, jointly accounting for 51 per cent of the country’s total foreign direct investment (FDI), according to data released by the Department for Promotion of Industry and Internal Trade (DPIIT).

Maharashtra led the tally with a commanding USD 19.6 billion in FDI inflows, representing 31 per cent of the national total. Karnataka followed with USD 6.62 billion, underscoring the two states’ dominant position in attracting global capital.

Delhi, Gujarat, Tamil Nadu, Haryana, and Telangana also featured among the top FDI destinations, receiving USD 6 billion, USD 5.71 billion, USD 3.68 billion, USD 3.14 billion, and USD 3 billion respectively.

Experts attribute this strong performance to significant improvements in infrastructure and ease of doing business in these leading states.

“Infrastructure in Maharashtra and Karnataka has improved considerably, making them more attractive to international investors,” said a senior economist.

India’s total FDI inflows—which include equity capital, reinvested earnings, and other capital — rose 14 per cent year-on-year to USD 81.04 billion in FY25. This marks the highest annual inflow in the last three years, up from USD 71.3 billion in FY24.

The robust growth in FDI underscores global investors’ growing confidence in India’s economic fundamentals and long-term growth prospects, particularly in sectors like manufacturing, IT, and green energy.