Maharashtra, Karnataka top states for foreign direct investment in FY25
What's the story
Maharashtra and Karnataka have emerged as the top states in India for foreign direct investment (FDI) inflows during the fiscal year 2024-25.
The two states together accounted for a whopping 51% of the total FDI, according to data from the Department for Promotion of Industry and Internal Trade (DPIIT).
Maharashtra led with $19.6 billion, accounting for 31% of India's total FDI during this period.
Investment details
Delhi, Gujarat, TN among top states
Karnataka closely followed Maharashtra in the race for FDI, receiving $6.62 billion in overseas investments during the last fiscal year.
Other states that attracted significant foreign investments include Delhi ($6 billion), Gujarat ($5.71 billion), Tamil Nadu ($3.68 billion), Haryana ($3.14 billion), and Telangana ($3 billion).
These figures highlight a broad distribution of foreign investments across several Indian states.
Infrastructure impact
Infrastructure attracting foreign investments
Experts believe that the massive inflows in Maharashtra and Karnataka can be attributed to their improved infrastructure.
An economist told PTI, "Infrastructure has improved considerably and that is making them attractive destinations for FDI in India."
This highlights the crucial role of robust infrastructure in attracting foreign investments and boosting economic growth.
FDI growth
Total FDI in India grows by 14%
The total FDI in India, including equity inflows, reinvested earnings, and other capital, grew by 14% to $81.04 billion during the last fiscal year. This is the highest it has been in three years.
In FY24, the FDI was recorded at $71.3 billion.
The significant increase underscores India's growing appeal as a destination for foreign investments amid global economic uncertainties.