India crossed a significant milestone in its economic growth story, with cumulative foreign direct investment (FDI) inflows crossing the $1 trillion mark since April 2000.1 For FY'25, India recorded $40,672 million in FDI till December 20242, a 27% increase over the same period last year—a testimony to the continued global investor confidence in India's market potential.
According to UNCTAD's World Investment Report 2024, India saw 1,058 greenfield project announcements and 163 international project finance deals. This makes India the second-largest country in terms of international project finance deals.3
These are not just numbers but a reflection of the country's growing prominence as a global growth hub as it continues to attract foreign investment across sectors. India is doubling down on infrastructure-led growth and digital transformation, making it the go-to destination for investors seeking to ride the wave of innovation.
But what Indian states are running in the FDI front league? From tech hubs to manufacturing giants, these states shape India's investment story and pave the way for a future-ready economy. Here are the top five Indian states that emerged as FDI magnets in FY 2025.
1. Maharashtra
Maharashtra continued to be India's leading destination for FDI in FY'25, recording inflows worth $16,651 million during FY 2025 till December 2024.4 The state accounts for 31% of India's total FDI equity inflows. A consistent performer, Maharashtra's robust industrial infrastructure, investor-friendly policies and business-friendly environment make the state a frontrunner in the FDI league. It boasts dedicated sectoral facilities and availability of the highest employable workforce (70%).5 Championing the Make in India initiative, the state has a strong presence of global investors in sectors such as automobiles, defence manufacturing, textiles, IT-BPM and food processing.6
Learn more about investment opportunities in Maharashtra here.
2. Karnataka
Karnataka, a thriving technology and startup ecosystem, attracted $4,496 million in FDI equity inflows during FY 2025 till December 2024.7 Accounting for 20% of India's FDI quity inflow, the state has robust economic fundamentals, driven by strong economic growth, increased consumer demand, better governance and a business-friendly environment.8 Karnataka's growing appeal in sectors such as IT, services and telecom reinforces the state's position as a global investment hub. The state received FDI equity inflow from Mauritius with a 25% share, Singapore at 24% and the US at 10%.9
Learn more about investment opportunities in Karnataka here.
3. Gujarat
Gujarat, India's third highest FDI recipient, clocked an FDI equity inflow of $5,566 million during FY 2025 till December 2024.10 Gujarat presents every possible mechanism that facilitates investments and businesses, ranging from state-of-the-art industrial infrastructure to business-friendly government policies.11 It accounts for ~31% of India's total merchandise exports in FY 2023-24. Textiles and apparel, ESDM, food processing, ports and shipping and IT-BPM are the key sectors driving investments in the state.12 As India accelerates its trajectory towards becoming a global manufacturing and innovation hub, Gujarat is leading the charge, turning investment into impact and potential into performance.
Learn more about investment opportunities in Gujarat here.
4. Delhi
The National Capital Region, encompassing Delhi, continued to be a favourable destination for foreign investors with $4,453 million in FDI equity inflows during FY 2025 till December 2024.13 This inflow is not incidental but a result of a strategic blend of location, policy, infrastructure and innovation. Sectors such as manufacturing, IT-BPM, tourism and healthcare are the frontrunners in attracting investor interest.14 As India continues to draw the world's attention as a key investment destination, Delhi remains at the forefront, bridging global ambition with Indian opportunity.
Learn more about investment opportunities in Delhi here.
5. Tamil Nadu
As the fifth largest recipient, Tamil Nadu demonstrated a positive trend in attracting FDI. The state attracted $2,903 million in FDI equity inflows till December 2024.15 Among the major states, Tamil Nadu consistently ranks among the top three in the Credit-Deposit Ratio (CDR), reflecting its high economic activity. The state is also well-positioned to tackle climate challenges through its 2023-2030 action plan, which focuses on emissions reduction, sustainable agriculture and water management.16 The reasons mentioned above and Tamil Nadu's blend of economic resilience, progressive governance and sustainability-driven initiatives, place it at the forefront of India's FDI landscape. As global investors seek stability, innovation and long-term value, the state continues to stand out as a hub that offers all and more.
Learn more about investment opportunities in Tamil Nadu here.
To promote foreign investments in India, the government has implemented an investor-friendly policy, wherein most sectors, except certain strategically important ones, are open for 100% FDI under the automatic route without government approval.
Almost 90% of the FDI inflow that is received is under the automatic route.17 Some of these figures underscore the dynamic nature of FDI distribution across Indian states, influenced by policy initiatives, infrastructure development and sector-specific advantages.
