Current Context : India’s Foreign Direct Investment (FDI) inflows rose 15% year-on-year to USD 18.62 billion in April–June FY26, compared to USD 16.17 billion in the same quarter last year.

• USA emerged as the largest investor, with inflows tripling to USD 5.61 billion.

ABOUT FDI

• Meaning: Investment by a company or individual from one country into business interests in another country.
• Law: Governed under Foreign Exchange Management Act (FEMA).
• Regulator: Reserve Bank of India (RBI).

RELEVANT DATA :

• Total FDI (Equity + Reinvested Earnings + Other Capital): USD 25.2 billion.
• Top Sources: USA (USD 5.61 bn), Singapore (USD 4.59 bn), Mauritius (USD 2.08 bn).
• Top Sectors: Computer Software & Hardware (USD 5.4 bn), Services (USD 3.28 bn), Automobiles (USD 1.29 bn).
• Top States: Karnataka (USD 5.69 bn), Maharashtra (USD 5.36 bn), Tamil Nadu (USD 2.67 bn).