New Delhi: Gujarat emerged among the top five states attracting Foreign Direct Investment (FDI) during the first quarter (April–June) of the current fiscal year. According to data released by the Department for Promotion of Industry and Internal Trade (DPIIT), the state recorded FDI equity inflows of USD 1.2 billion, ranking fourth after Karnataka, Maharashtra, and Tamil Nadu.

At the national level, FDI in India grew 15% to USD 18.62 billion in April–June FY26. Overall FDI—including equity inflows, reinvested earnings, and other capital—rose to USD 25.2 billion in the quarter, compared to USD 22.5 billion in the same period last year.

The US was the largest contributor with USD 5.61 billion, a sharp jump from USD 1.5 billion a year ago. It was followed by Singapore (USD 4.59 billion), Mauritius (USD 2.08 billion), Cyprus (USD 1.1 billion), the UAE (USD 1 billion), Cayman Islands (USD 676 million), the Netherlands (USD 667 million), Japan (USD 551 million), and Germany (USD 191 million).

Among states, Karnataka led with USD 5.69 billion, followed by Maharashtra (USD 5.36 billion), Tamil Nadu (USD 2.67 billion), Gujarat (USD 1.2 billion), Haryana (USD 1.03 billion), Delhi (USD 1 billion), and Telangana (USD 395 million).

The government said its liberalised FDI policy—under which most sectors are open to 100% overseas investment via the automatic route—has been instrumental in driving inflows. Over the last decade, reforms have included higher caps in defence, insurance, and pensions; relaxation in construction, civil aviation, and single-brand retail; and 100% FDI allowed in coal mining, contract manufacturing, and insurance intermediaries. In the 2025 Union Budget, the FDI ceiling for insurance companies investing their entire premium domestically was proposed to be raised from 74% to 100%.

For FY 2024–25, India had received USD 50.01 billion in FDI equity inflows and USD 80.6 billion in total FDI. DeshGujarat