Maharashtra, Karnataka Drive Over Half of India's FDI in FY25: DPIIT Data The government's recent efforts to streamline regulatory procedures and encourage sector-specific investments appear to be yielding results, though analysts caution that sustaining the momentum will require expanding capacity and investor confidence in other regions as well.
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Maharashtra and Karnataka accounted for more than half of India's total foreign direct investment (FDI) inflows in the financial year 2024–25, according to data released by the Department for Promotion of Industry and Internal Trade (DPIIT). Together, the two states attracted 51 per cent of the total FDI, underscoring their growing importance as investment hubs.
Maharashtra led the chart with FDI inflows totaling USD 19.6 billion, representing 31 per cent of the national share. As reported by PTI, Karnataka followed with USD 6.62 billion in foreign investments over the same period. The figures highlight the geographical concentration of overseas capital in a few economically prominent states.
Other major recipients included Delhi with USD 6 billion, Gujarat with USD 5.71 billion, Tamil Nadu at USD 3.68 billion, Haryana at USD 3.14 billion, and Telangana with USD 3 billion in foreign inflows.
The DPIIT data show that overall FDI into India rose by 14 per cent year-on-year to USD 81.04 billion in FY25, the highest level in three years. This includes equity inflows, reinvested earnings, and other capital components. In comparison, the total FDI stood at USD 71.3 billion in 2023–24.
According to economists, the sharp rise in foreign capital flow into Maharashtra and Karnataka can be attributed in part to significant improvements in infrastructure. "Infrastructure has improved considerably and that is making them attractive destinations for FDI in India," an economist quoted PTI, noting that enhanced logistics, industrial connectivity, and policy support have helped draw overseas investors.
The concentration of FDI in a few states also reflects disparities in ease of doing business and regional preparedness to absorb capital. Maharashtra, for instance, continues to benefit from its status as the financial capital of the country and its established industrial base, while Karnataka leverages its strong technology ecosystem centered in Bengaluru.
The government's recent efforts to streamline regulatory procedures and encourage sector-specific investments appear to be yielding results, though analysts caution that sustaining the momentum will require expanding capacity and investor confidence in other regions as well.
