New Delhi: India recorded a 15% surge in Foreign Direct Investment (FDI), with inflows touching $18.62 billion in April–June 2025. Despite ongoing tariff concerns, the United States emerged as the top investor, contributing $5.61 billion, nearly three times more than the same period last year.

Karnataka overtook Maharashtra to become the leading FDI destination, attracting $5.69 billion in Q1. Experts credit this to Bengaluru’s position as India’s tech and innovation hub, housing Fortune 500 R&D centres and driving software exports. Strong policy support, infrastructure upgrades, and a skilled talent pool have further boosted investor confidence.

Sectors drawing the highest inflows included IT and software ($5.4 billion), services ($3.28 billion), automobiles ($1.29 billion), and renewable energy ($1.14 billion). Officials highlighted that reforms—such as raising FDI caps in defence, insurance, and pensions, and opening up coal mining and contract manufacturing—have helped sustain investor interest.

With Karnataka and Maharashtra together accounting for over 50% of India’s FDI, the government sees this momentum as a reflection of India’s growing appeal as a global investment hub.