Maharashtra and Karnataka: India's FDI Powerhouses

Maharashtra and Karnataka led the foreign direct investment inflows into India, accounting for 51% of the total FDI in the 2024-25 fiscal year. Improvements in infrastructure have been a key factor in attracting overseas investment. FDI in India grew 14% to USD 81.04 billion last year.

Maharashtra and Karnataka have emerged as the most attractive states for foreign direct investment (FDI) in India, securing 51% of the total inflows in the fiscal year 2024-25, according to data from the Department for Promotion of Industry and Internal Trade (DPIIT).

Maharashtra led the pack by attracting foreign inflows worth USD 19.6 billion, which accounted for 31% of the country's overall FDI, while Karnataka secured USD 6.62 billion in foreign investments. Following them were Delhi (USD 6 billion), Gujarat (USD 5.71 billion), Tamil Nadu (USD 3.68 billion), Haryana (USD 3.14 billion), and Telangana (USD 3 billion).

Experts suggest that significant improvements in infrastructure have played a crucial role in drawing more foreign investment to these states. The total FDI into India, encompassing equity inflows, reinvested earnings, and other capital, grew by 14% to reach USD 81.04 billion, marking the highest level in the past three years.