Maharashtra and Karnataka Attract 51 Percent of India's FDI in FY25

Maharashtra and Karnataka emerged as the top destinations for foreign direct investment (FDI) in India during the financial year 2024-25, accounting for a combined 51 percent of the total inflows, according to the latest data from the Department for Promotion of Industry and Internal Trade (DPIIT).

Maharashtra attracted the highest amount of FDI, receiving 19.6 billion dollars and contributing 31 percent of the national total. Karnataka followed with 6.62 billion dollars in foreign investments.

Other major recipients included Delhi with 6 billion dollars, Gujarat with 5.71 billion dollars, Tamil Nadu with 3.68 billion dollars, Haryana with 3.14 billion dollars, and Telangana with 3 billion dollars.

Experts attribute the surge in FDI to significant improvements in infrastructure in Maharashtra and Karnataka. Enhanced connectivity, logistics, and industrial zones have made these states more appealing to foreign investors.

"Improved infrastructure is a key factor making Maharashtra and Karnataka attractive destinations for FDI," an economist told PTI.

Overall, India recorded a 14 percent increase in total FDI, including equity inflows, reinvested earnings, and other capital, reaching 81.04 billion dollars in FY25. This marks the highest level of foreign investment in the country over the past three years. In comparison, the total FDI in FY24 was 71.3 billion dollars.