The Foreign Direct Investment (FDI) equity inflows into the country increased 18% on year to $ 58.8 billion in 2025-26 with major boost provided by investors in computer software and hardware sectors, an analysis by the Department for Promotion of Industry and Internal Trade (DPIIT) said.

Overall FDI last year – which included reinvested earnings and other capital – was up 17% on year to $ 94.5 billion.

In the January-March quarter the FDI equity investments grew 17.5% on year to 10.9 billion. The net investment by Foreign Portfolio Investors (FPI) was in the negative. They pulled out $ 15.5 billion from India in 2025-26.

Most of the withdrawal by FPIs was in the January-March quarter. Till April-December the outflows stood at $ 2.9 billion and in the last quarter of the year they withdrew $ 12.5 billion.

The biggest magnet for FDI was computer hardware sector that saw investments jump 78.4% to $ 13.9 billion. The second biggest recipient of FDI, the services sector, saw a growth of 7.0% to $ 10.0 billion.

Despite trade tensions, the FDI from the US saw a biggest jump of 104.7% to $ 11.1 billion in 2025-26. Singapore remained the biggest source of FDI with a growth of 32.5 % to $ 19.8 billion. The UK was the third biggest source of FDI, investing $ 8.8 billion which was 31.4% more than last year.