India Q3 FDI inflows up 16.6% on-year

India's foreign direct investment (FDI) equity inflows saw a notable increase of 16.6% year-on-year, reaching $12.69 billion in the third quarter of FY26, according to recent data from the Department for Promotion of Industry and Internal Trade (DPIIT). This rise, compared to $10.88 billion in the same period last year, indicates a robust recovery in investment confidence despite global economic challenges. Singapore emerged as the leading source of FDI during the April-December period, contributing $17.6 billion, followed closely by the United States with $7.8 billion. While total FDI, which includes various forms of capital, reached $21.52 billion, marking a 13% increase from the previous year, December alone accounted for the highest monthly equity inflows of $5.48 billion. Maharashtra was the top recipient state, attracting $15.38 billion, followed by Karnataka and Gujarat. The computer hardware and software sectors topped the list for sectoral inflows, bringing in $10.7 billion. The Indian government is targeting an increase in annual FDI inflows to $100 billion, aligning with its Make in India initiative aimed at bolstering domestic manufacturing and economic growth.