FDI rises 6% to USD 19.81 billion in April-June
In the first quarter of this fiscal, India received the maximum investments from countries like Singapore, Mauritius and the US.
Foreign direct investment (FDI) in India surged 6% to $19.81 billion during the fiscal first quarter, with Japan leading the investment followed by Singapore and Mauritius, according to government data released Friday. Inflows, including reinvested earnings, reached $30.6 billion in the three months ending June, as reported by the Department for Promotion of Industry and Internal Trade (DPIIT).
Japan's investment amounted to $5.7 billion, Singapore's was $5.2 billion, and Mauritius contributed $2.3 billion during the same period. However, FDI from the United States saw a significant decline of over 76%, dropping to $1.34 billion in April-June of the current fiscal year from $5.61 billion in the same period of the previous fiscal year.
The services sector attracted the highest foreign investment, receiving $7 billion, followed by computer hardware and software at $2.8 billion. Services encompass a wide range of industries including financial services, banking, insurance, non-financial/business services, outsourcing, research and development, courier services, and technology testing and analysis.
Tamil Nadu emerged as the top recipient of FDI, attracting $5.9 billion. Maharashtra followed with $4.2 billion in FDI during the June quarter. Overall, India received $12 billion in FDI during the April quarter.
Commerce and industry minister Piyush Goyal stated that FDI reached a record $94.53 billion last fiscal year, increasing cumulative inflows to $843 billion between FY15 and FY26. Goyal highlighted the government's production-linked incentive (PLI) schemes, which have spurred investments worth ₹2.4 lakh crore, production and sales of ₹23.8 lakh crore, and exports worth ₹15.2 lakh crore. These schemes have generated over 1.46 million direct and indirect jobs, according to Goyal.
The PLI schemes have particularly benefited sectors such as electronics and telecom, pharmaceuticals, medical devices, automobile, IT hardware, and specialty steel. The positive impact is attributed to ease of doing business reforms that have simplified regulations and reduced compliance burdens, as well as reforms in key sectors that have created new opportunities for investment and manufacturing.
Goyal emphasized that India is on track to become a global manufacturing hub through increased foreign and local investments, with the Make in India initiative aiming to enhance the manufacturing sector's share in the gross domestic product. The government is also establishing greenfield industrial smart cities across the country under the National Industrial Corridor Development Programme to build infrastructure for globally competitive manufacturing.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
