FDI inflow rises 16 per cent in first half of FY26, hits highest-ever level

India recorded a 16 per cent rise in FDI inflows to USD 50.36 billion in the first half of FY26, the highest ever for the period. Minister Jitin Prasada said FTAs, including the EFTA pact securing USD 100 billion investment, are strengthening investor confidence.

New Delhi: Total foreign direct investment (FDI) inflow reported during the first half of FY 2025-26 ($50.36 billion) has increased by 16 per cent compared to the year-ago period ($43.37 billion) — the highest ever for the first half of a financial year, the Parliament was informed on Tuesday.

Gross FDI inflows have increased from over $34 billion in 2012-13 to over $80 billion in 2024-25, said Minister of State for Commerce and Industry, Jitin Prasada, in Lok Sabha.

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As per official data, India recorded a strong rebound in FDI in the second quarter of the current financial year, with total inflows rising over 18 per cent year-on-year to $35.18 billion during April–September 2025.

“The recent trend in net FDI inflows is associated with increased repatriation/disinvestment and rising Overseas Direct Investment (ODI) outflows. The ODI outflow on account of liberalized ODI rules notified in 2022 is helping Indian entities to enhance their business footprints abroad, enabling them to compete in the global market, adding to the strength of the Indian economy in the long run,” informed Prasada.

The increasing trend of repatriation indicates that India is not only attracting foreign capital but also delivering strong returns, which enhances its reputation as a reliable investment destination, he added.

The government has leveraged the free trade agreements for the promotion of Export Diversification and to attract investment. India has signed 15 free trade agreements (FTAs) and 6 preferential trade agreements (PTAs) with its trading partners.

“Trade and Economic Partnership Agreement between India and the European Free Trade Association (EFTA), signed on March 10, 2024, is a modern and forward-looking agreement. For the first time in the history of Free Trade Agreements, a unilateral binding commitment of $100 billion investment and 1 million direct jobs over the next 15 years has been secured from Switzerland, Norway, Liechtenstein, and Iceland,” Prasada noted.

He further mentioned that the government is working with all stakeholders to enable “our exporters to better utilise the benefits of India’s FTAs with major markets such as Japan, Korea, the UAE, and effectively utilise the opportunities that have been created with the recently concluded FTAs such as with the EFTA countries and the UK”.

The government is in negotiations for early conclusion of mutually beneficial FTAs with the EU, Peru, Chile, New Zealand, Oman, etc. The government is engaged with all stakeholders-including exporters, Export Promotion Councils (EPCs), industry associations, and state governments, to assess the evolving impact of the US tariff measures, he added.