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India FDI Rises 6% to $19.81 Billion in April-June as Japan Leads and US Inflows Fall 76%
Author
Shoonya Team
Foreign direct investment in India rose 6% to $19.81 billion in April-June FY27, though inflows from the US fell by over 76%, according to data from the Department for Promotion of Industry and Internal Trade. FDI had stood at $18.62 billion in the same period of FY26.
Month-Wise FDI Movement in Q1 FY27
The quarterly total was shaped by a strong April followed by weaker May and June:
- April: nearly doubled to $12.1 billion from $6.6 billion in April 2025
- May: fell over 45% year-on-year to $2.8 billion
- June: declined about 29% to $4.91 billion
Which Countries Invested the Most in Q1 FY27
Japan emerged as the highest investor during the quarter, displacing the US from its typical position among the top sources.
| Country | FDI in Q1 FY27 |
|---|---|
| Japan | $5.71 billion |
| Singapore | $5.22 billion |
| Mauritius | $2.31 billion |
| Netherlands | $1.38 billion |
| United States | $1.34 billion |
| UAE | $868 million |
Why US Inflows Fell Sharply
FDI from the US dipped by over 76% to $1.34 billion in April-June FY27 from $5.61 billion in the same period of FY26. Inflows from the UAE also declined, falling to $868 million from $1 billion a year earlier.
Which Sectors Attracted the Most Investment
Services remained the largest recipient, followed by technology and energy:
| Sector | FDI in Q1 FY27 |
|---|---|
| Services | $7.04 billion |
| Computer software and hardware | $2.84 billion |
| Trading | $1.92 billion |
| Non-conventional energy | $1.24 billion |
| Auto | $622 million |
Total FDI Including Reinvested Earnings
Total FDI, including equity inflows, reinvested earnings, and other capital, increased about 22% to $30.65 billion during April-June FY27. The equity inflow figure of $19.81 billion represents only the direct equity component of this broader measure.
Which States Received the Highest Inflows
Tamil Nadu received the highest FDI among states during the quarter at $5.95 billion, followed by Maharashtra at $4.22 billion, Delhi at $2.67 billion, Karnataka at $2.11 billion, and Gujarat at $1.3 billion.
Final Outlook
India’s Q1 FY27 FDI data shows a headline increase driven largely by a strong April, with May and June moving in the opposite direction. Japan’s emergence as the top source and the sharp drop in US inflows reflect a shifting geography of capital flows. How the remaining quarters of FY27 track will depend on global investment sentiment, trade agreement progress, and sector-specific demand for overseas capital.
Source: Moneycontrol
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