India is set to witness its foreign direct investment inflows cross the $90 billion mark in fiscal year 2025-26, propelled by strategic policy reforms, free trade agreements, and robust economic expansion, as stated by a top government official.
Key Points
- India's FDI inflows are anticipated to exceed $90 billion in FY26, with potential to reach $100 billion by 2030.
- Gross FDI inflows reached $88.29 billion up to February in FY26, significantly higher than the $80.61 billion recorded in FY25.
- Net FDI inflows saw a sharp increase to $6.26 billion during the period, compared to $959 million in the previous fiscal year.
- Policy clarity, institutional commitment, and global investor trust are key drivers of India's investment momentum.
- States like Gujarat, Madhya Pradesh, and Andhra Pradesh are leading investment destinations due to proactive policies and infrastructure development.
India's foreign direct investment (FDI) inflows are likely to cross the $90 billion mark in 2025-26 (FY26), according to a government official, with strong momentum driven by policy reforms, free trade agreements, and robust economic growth.
FDI Growth and Global Standing
Gross FDI inflows stood at $88.29 billion up to February in FY26, higher than the total of $80.61 billion recorded in 2024-25.
Net FDI inflows rose sharply to $6.26 billion during the period, compared with $959 million in the previous financial year.
India's share in global FDI inflows has roughly doubled over the past decade, reflecting its growing appeal as an investment destination.
Department for Promotion of Industry and Internal Trade (DPIIT) Secretary Amardeep Singh Bhatia said annual inflows could touch $100 billion by 2030, supported by reforms and supply-chain shifts.
He added that reform measures and institutional support have strengthened investor confidence.
Investor Confidence and Regulatory Environment
"India's investment momentum is a direct outcome of policy clarity, institutional commitment, and the trust global investors place in our systems.
"The $6.1 billion grounded by Invest India in FY26 reflects the strength of India's regulatory environment and the depth of its economic transformation," Bhatia said.
Bhatia said states such as Gujarat, Madhya Pradesh, and Andhra Pradesh have emerged as top investment destinations due to proactive policies and infrastructure development.
Invest India's Role and Sectoral Focus
According to Invest India, the national investment promotion and facilitation agency under DPIIT, investments worth over $6.1 billion were facilitated through the grounding of 60 projects across 14 states in FY26.
These projects are estimated to generate more than 31,000 jobs. Around 42 per cent of the total grounded investment value originates from European nations.
Bhatia said that investments routed through Invest India have nearly trebled compared with 2024–25.
Chemicals, pharmaceutical and biotechnology, and food processing account for about 65 per cent of the grounded investments, driven by high-value projects aligned with India's manufacturing and value-addition priorities.
Emerging sectors such as electronics system design and manufacturing, aerospace and defence, and automotive/electric vehicle also recorded significant activity.
