India received USD 94,836 million of foreign direct investment (FDI) in FY 2025-26, 18% more than a year earlier, according to the provisional fact sheet of the Department for Promotion of Industry and Internal Trade (DPIIT) updated to June 2026. This guide to FDI in India 2026 sets out where that money came from, which rules changed this year, how the two entry routes work and what an investor files once the funds arrive.
📊 FDI in India 2026: The Latest Figures
DPIIT’s quarterly fact sheet, published on 14 September 2026 and updated to June 2026, puts India’s total FDI inflow for FY 2025-26 at USD 94,836 million, against USD 80,615 million in FY 2024-25. Total inflow adds equity, reinvested earnings and other capital, taken from Table 35 of the Reserve Bank of India (RBI) Bulletin for August 2026. DPIIT marks every one of these figures as provisional.
The table splits the FY 2025-26 total into its parts, with the first quarter of FY 2026-27 alongside (USD million):
| No. | Component | FY 2025-26 | April to June 2026 |
|---|---|---|---|
| 1 | Equity through the government, automatic and acquisition routes | 58,847 | 19,817 |
| 2 | Equity capital of unincorporated bodies (estimate) | 3,436 | 939 |
| 3 | Reinvested earnings | 25,651 | 7,010 |
| 4 | Other capital | 6,902 | 2,891 |
| 5 | Total FDI inflow | 94,836 | 30,657 |
DPIIT’s own equity database, which counts only the equity component, shows USD 58,846 million (₹5,16,936 crore) for FY 2025-26, up 18% on USD 50,018 million. For April to June 2026, equity inflow was USD 19,817 million (₹1,86,661 crore). That is 6% more in dollar terms than the USD 18,628 million of April to June 2025, and 17% more in rupee terms.
Why the FY 2025-26 Total Changed
Two DPIIT sheets give two totals for the same year. The March 2026 sheet, posted on 3 June 2026, showed USD 94,527 million and growth of 17%. The June 2026 sheet shows USD 94,836 million and 18%. Both sheets note that reinvested earnings and other capital are estimates and that all figures are provisional, so the total can move again. When you quote a figure, quote the sheet date with it.
Where the Money Comes From
Singapore was the largest source of FDI equity in FY 2025-26 at USD 19,802 million, followed by the USA at USD 11,171 million and Mauritius at USD 6,576 million, according to DPIIT’s country table. DPIIT notes that its country analysis rests on remittance-wise details supplied by the RBI. Read the table as the country the money was remitted from. The land-border rule discussed below looks through to the beneficial owner, so the two can point to different countries.
Here are the ten countries DPIIT ranks, with three periods side by side (equity, USD million):
| No. | Country | FY 2024-25 | FY 2025-26 | April to June 2026 |
|---|---|---|---|---|
| 1 | Singapore | 14,942 | 19,802 | 5,224 |
| 2 | USA | 5,457 | 11,171 | 1,349 |
| 3 | Mauritius | 8,344 | 6,576 | 2,319 |
| 4 | Japan | 2,478 | 3,745 | 5,713 |
| 5 | Netherlands | 4,620 | 3,374 | 1,383 |
| 6 | UAE | 4,345 | 2,738 | 868 |
| 7 | Cayman Islands | 371 | 2,084 | 157 |
| 8 | Cyprus | 1,203 | 1,412 | 343 |
| 9 | United Kingdom | 795 | 1,007 | 229 |
| 10 | Germany | 469 | 495 | 237 |
| 11 | All countries | 50,018 | 58,846 | 19,817 |
Equity from the USA more than doubled in FY 2025-26. In the first quarter of FY 2026-27, Japan led every country with USD 5,713 million, ahead of Singapore at USD 5,224 million. One quarter is too short to call a trend, and the next fact sheet will show whether it holds.
Sectors and States That Draw FDI
Computer software and hardware drew the most FDI equity in FY 2025-26, USD 13,946 million, followed by the services sector at USD 10,010 million and trading at USD 4,011 million. DPIIT’s services heading covers financial, banking, insurance, non-financial and business services, outsourcing, R&D, courier, and technical testing and analysis. Among states, Maharashtra received USD 18,418 million and Karnataka USD 12,939 million in the same year.
The sector table, in USD million of equity:
| No. | Sector | FY 2025-26 | April to June 2026 |
|---|---|---|---|
| 1 | Computer software and hardware | 13,946 | 2,844 |
| 2 | Services sector | 10,010 | 7,040 |
| 3 | Trading | 4,011 | 1,923 |
| 4 | Non-conventional energy | 3,019 | 1,242 |
| 5 | Construction (infrastructure) activities | 2,574 | 584 |
| 6 | Automobile industry | 2,459 | 622 |
| 7 | Drugs and pharmaceuticals | 1,912 | 100 |
| 8 | Chemicals (other than fertilisers) | 853 | 719 |
The leading states, also in USD million of equity (DPIIT keeps state data only from October 2019):
| No. | State | FY 2025-26 | April to June 2026 |
|---|---|---|---|
| 1 | Maharashtra | 18,418 | 4,220 |
| 2 | Karnataka | 12,939 | 2,112 |
| 3 | Delhi | 6,182 | 2,671 |
| 4 | Gujarat | 5,713 | 1,296 |
| 5 | Tamil Nadu | 4,724 | 5,953 |
| 6 | Haryana | 4,526 | 1,358 |
| 7 | Telangana | 2,253 | 1,322 |
Tamil Nadu received USD 5,953 million in April to June 2026, more than its USD 4,724 million for the whole of FY 2025-26 and the most of any state that quarter. Services equity in the same quarter was USD 7,040 million.
⚖️ What Changed in the FDI Rules in 2026
Four DPIIT documents and one Gazette notification changed India’s FDI framework between February and July 2026. A DPIIT press note states policy; each 2026 press note says it takes effect from the date of the notification under the Foreign Exchange Management Act, 1999 (FEMA) that amends the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 (NDI Rules). The table gives each change and the date it applies on the document’s own terms.
The 2026 changes, in date order:
| No. | Document | Dated | What it changes | When it applies |
|---|---|---|---|---|
| 1 | Press Note No. 1 (2026 Series) | 9 February 2026 | Indian insurance companies: foreign investment up to 100% under the automatic route, subject to approval or verification by the Insurance Regulatory and Development Authority of India (IRDAI); Life Insurance Corporation of India: up to 20% | From the date of the FEMA notification |
| 2 | Press Note No. 2 (2026 Series) | 15 March 2026 | Rewrites para 3.1.1 of the FDI Policy on investors from countries that share a land border with India | Its text was carried into the NDI Rules by S.O. 2174(E) |
| 3 | FEM (Non-debt Instruments) (Amendment) Rules, 2026, S.O. 2174(E) | 1 May 2026 | Substitutes Rule 6(a) of the NDI Rules with the new land-border text | In force from 2 May 2026, the date of Gazette publication |
| 4 | DPIIT SOP for FDI proposals, No. 1/8/2016-F.C.I | 4 May 2026 | Time limits for Government-route proposals; 60-day decisions for some land-border investments; reporting by land-border-linked investors below the threshold | Posted on dpiit.gov.in on 5 May 2026 |
| 5 | Press Note No. 3 (2026 Series) | 23 July 2026 | Allows an inventory-based e-commerce model used exclusively to export goods made or produced in India | From the date of the FEMA notification |
The Land-Border Rule from 2 May 2026
Rule 6(a) of the NDI Rules, as substituted by S.O. 2174(E), puts an entity or citizen of a country sharing a land border with India on the Government route, as it does an investment whose beneficial owner is such a citizen or whose beneficial ownership is vested in such a country. “Beneficial owner” takes its meaning from Section 2(1)(fa) of the Prevention of Money-laundering Act, 2002, applied through the thresholds in Rule 9(3) of the PML (Maintenance of Records) Rules, 2005.
Three provisions of the new rule matter in practice:
- A multilateral bank or fund of which India is a member is not treated as an entity of any country, and no country is treated as the beneficial owner of its investments.
- A later change in ownership that brings an existing investment within the rule needs prior Government approval.
- An investor with some land-border ownership below the threshold needs no approval but must report; Annexure VII of the DPIIT SOP asks for that report before the money is remitted.
Automatic Route or Government Route
Foreign investment in an Indian company enters by one of two routes. Under the automatic route, the investor needs no prior approval from the Central Government; under the Government route, prior approval is needed and the investment must follow its conditions (paras 5.1.1 and 5.1.2 of the RBI Master Direction – Foreign Investment in India, updated to 15 June 2026). The sector, its cap and, since 2 May 2026, the beneficial owner decide the route.
Government-route proposals are filed online on the Foreign Investment Facilitation (FIF) / National Single Window System (NSWS) portal. Annexure V of the DPIIT SOP dated 4 May 2026 sets these time limits:
| No. | Stage | Time allowed | Cumulative |
|---|---|---|---|
| 1 | DPIIT circulates the proposal to the ministries, RBI, MHA and MEA, and completes initial scrutiny | 2 days + 12 days | 2 weeks |
| 2 | DPIIT clarification on FDI policy issues | 2 weeks | 4 weeks |
| 3 | Comments from MHA, MEA and other consulted bodies | 6 weeks | 8 weeks |
| 4 | Decision by the competent authority | 4 weeks | 12 weeks |
DPIIT gets two more weeks where a proposal is headed for rejection or extra conditions, and the clock stops while the applicant fixes deficiencies or supplies information. For investors from a land-border country holding up to 49% of an Indian company in a Schedule II sector, such as capital goods or electronic component manufacturing, with majority ownership and control staying with resident Indians, Annexure VII of the SOP sets a 60-day decision period.
Some sectors are closed whatever the route. Para 3.1 of the Master Direction prohibits foreign investment in lottery, gambling and betting, chit funds, Nidhi companies, trading in transferable development rights, real estate business or farm houses, manufacture of tobacco cigars and cigarettes, atomic energy and railway operations. Which structure fits your business in India is a separate decision, covered on our India entry services page.
📝 After the Money Arrives: Reporting
Receiving FDI starts a reporting clock under the Foreign Exchange Management (Mode of Payment and Reporting of Non-Debt Instruments) Regulations, 2019, notified as FEMA 395/2019-RB and amended up to 13 June 2026. Schedule I requires the Indian company to issue equity instruments within 60 days of receiving the money; if it does not, the money goes back within 15 days after the 60 days end. The filings themselves are reported to the RBI.
The forms an investee will meet, in brief:
- Form FC-GPR, within 30 days of issuing equity instruments to a person resident outside India (Regulation 4(1)).
- The annual Return on Foreign Liabilities and Assets (FLA), by 15 July each year, for every company that received FDI and every LLP that received foreign capital contribution (Regulation 4(2)).
- Form LLP (I), within 30 days of an LLP receiving the capital contribution (Regulation 4(6)).
A worked example: a company receives a foreign subscription on 10 November 2026. It must allot the shares by 9 January 2027, which is the 60th day. If it allots on 5 January 2027, Form FC-GPR is due by 4 February 2027. If it cannot allot in time, the refund is due by 24 January 2027.
FAQ
USD 94,836 million, according to DPIIT’s quarterly fact sheet updated to June 2026 and published on 14 September 2026. That total adds equity (USD 58,847 million on the RBI basis), equity capital of unincorporated bodies, reinvested earnings and other capital, and it was 18% higher than the USD 80,615 million of FY 2024-25. The figures are provisional. DPIIT’s earlier sheet, updated to March 2026, showed USD 94,527 million, so expect the number to be revised again as the RBI reconciles its data.
Singapore, with FDI equity of USD 19,802 million, followed by the USA (USD 11,171 million), Mauritius (USD 6,576 million), Japan (USD 3,745 million) and the Netherlands (USD 3,374 million), according to DPIIT’s provisional fact sheet updated to June 2026. DPIIT builds the country table from remittance-wise details supplied by the RBI. In the first quarter of FY 2026-27, from April to June 2026, Japan was the largest source at USD 5,713 million.
Under the automatic route, a person resident outside India invests without prior approval from the Central Government. Under the Government route, prior Government approval is needed and the investment follows the conditions in that approval (paras 5.1.1 and 5.1.2, RBI Master Direction – Foreign Investment in India). Government-route proposals are filed on the FIF/NSWS portal. DPIIT’s SOP of 4 May 2026 allows up to 12 weeks for a decision, plus two weeks where rejection or extra conditions are proposed.
Only where land-border ownership stays below the beneficial-ownership threshold. Under Rule 6(a) of the NDI Rules, as substituted from 2 May 2026 by S.O. 2174(E), an entity or citizen of a country sharing a land border with India, or an investment whose beneficial owner is such a citizen, uses the Government route. Beneficial ownership follows Section 2(1)(fa) of the Prevention of Money-laundering Act, 2002 and Rule 9(3) of the PML Rules. An investor below the threshold avoids approval but reports before remitting the money, under Annexure VII of DPIIT’s SOP.
DPIIT’s Press Note No. 1 (2026 Series), dated 9 February 2026, amends para 5.2.22 of the FDI Policy to allow foreign investment up to 100% in Indian insurance companies under the automatic route, subject to approval or verification by IRDAI, and up to 20% in the Life Insurance Corporation of India. Paragraph 2 of the press note says the change takes effect from the date of the FEMA notification. Before investing on this basis, check that the NDI Rules have been amended to match.
Yes, if the LLP works in a sector where 100% foreign investment is allowed under the automatic route and no FDI-linked performance conditions apply. The RBI Master Direction – Foreign Investment in India, updated to 15 June 2026, states this condition and excludes citizens and entities of Pakistan and Bangladesh. The LLP reports each capital contribution in Form LLP (I) within 30 days of receipt under Regulation 4(6) of FEMA 395/2019-RB, and files the FLA return by 15 July each year.
Conclusion
FDI equity was USD 58,846 million in FY 2025-26 and USD 19,817 million in April to June 2026 on DPIIT’s provisional count, with Singapore, the USA and Mauritius the largest sources over the year. The rules moved too: Rule 6(a) was substituted from 2 May 2026, three press notes revised the FDI Policy, and the SOP of 4 May 2026 set time limits for approvals.
Setindiabiz’s process experts can check your route, prepare a Government-route application on the NSWS portal and file FC-GPR, FLA and LLP (I) returns on time. Call +91 98996 00605 (Monday to Saturday, 9:30 AM to 6:30 PM) or write to help@setindiabiz.com.
