Maharashtra and Karnataka have emerged as the top destinations for foreign direct investment (FDI) in India during FY2024-25, accounting for more than half of the country’s total inflows, according to data released by the Department for Promotion of Industry and Internal Trade (DPIIT).
Maharashtra topped the FDI table with foreign inflows of USD 19.6 billion, accounting for 31% of India’s total FDI during April-March FY2025.
Karnataka stood second with foreign investments of USD 6.62 billion, helping the two states collectively grab 51% of the total inflows. DPIIT data shows Delhi ranked third with USD 6 billion, followed by Gujarat (USD 5.71 billion), Tamil Nadu (USD 3.68 billion), Haryana (USD 3.14 billion) and Telangana (USD 3 billion).
Experts attribute the dominance of Maharashtra and Karnataka to significant improvements in infrastructure, which has made these states increasingly attractive to foreign investors.
“Both states have significantly improved infrastructure, increasing their appeal as investment hubs,” said an economist. Total FDI inflows into India – which includes equity investments, reinvested earnings and other capital – rose 14% to USD 81.04 billion in FY25.
This is the highest FDI inflow in the last three years, up from USD 71.3 billion in FY24. The strong growth in FDI is seen as a positive sign for India’s investment climate, with key states taking a lead role in attracting global capital.
