Karnataka sees fastest FDI rise among major states
NEW DELHI: Karnataka saw FDI flows nearly double to $13 billion during the last financial year as tech investors and global capability centres (GCCs) flocked to India’s Silicon Valley, while Maharashtra, the top destination, saw a dip in inflows after two years.Haryana, Tamil Nadu, Rajasthan, Uttar Pradesh, Andhra Pradesh and Punjab were among states that saw a significant increase in equity inflows, while Telangana saw a decline, latest official data shared in Parliament on Tuesday showed (see graphic). Gujarat was flat at $5.7 billion, also retaining the third spot among states.
Maharashtra FDI declines
FDI comprises equity and reinvested earnings of companies but the data shared by govt was on the former. Last year, equity inflows into India rose 17.6% to $58 billion.A large part of the investments were driven by tech companies with money flowing into data centres and GCCs as well as investments into e-commerce companies such as Amazon and Flipkart. Sector wise data showed computer software and hardware ($13.9 billion) along with services sector ($10 billion) that includes finance, banking, insurance etc saw robust growth in FY26 and cornered nearly 40% of the total FDI inflows ($58.8 billion). Notably, food processing industry saw FDI grow nearly six times to $3 billion, while others like drugs and pharmaceuticals ($1.9 billion), automobile industry ($ 2.5 billion) and education ($1.3 billion) also saw robust growth.Meanwhile, FDI in air transport fell nearly 70% to $383 million, whereas the electronics sector saw FDI nearly halve to $1.1 billion.
