India’s FDI Hits Record Dollar 94.53 Billion as Investment and Manufacturing Momentum Builds
India recorded its highest-ever annual foreign direct investment (FDI) inflow of $94.53 billion in 2025-26, taking cumulative FDI inflows from 2014-15 to 2025-26 to $843 billion, Commerce and Industry Minister Piyush Goyal said on Friday.
The latest figures come as India marks 12 years of the Make in India initiative, with foreign investment increasingly linked to the country’s efforts to expand manufacturing capacity, strengthen supply chains and attract global businesses.
According to Goyal, the Production Linked Incentive (PLI) schemes had generated Rs 2.40 lakh crore in actual investment, while production and sales under the schemes reached Rs 23.8 lakh crore as of March 31, 2026. Exports stood at Rs 15.2 lakh crore, with the schemes generating more than 14.6 lakh direct and indirect jobs.
Electronics and telecom, pharmaceuticals, medical devices, automobiles, IT hardware and speciality steel are among the sectors that have benefited from the PLI programme.
Investment supports manufacturing expansion
The rise in FDI comes at a time when India is working to expand its role in global manufacturing and supply chains. The government has also been developing greenfield industrial smart cities under the National Industrial Corridor Development Programme to support manufacturing activity and investment.
Ease of Doing Business reforms have also been aimed at simplifying regulations and reducing compliance requirements for companies, while sector-specific reforms have opened additional opportunities for investment.
India’s manufacturing investment story has also seen stronger participation from foreign companies in areas such as electronics, pharmaceuticals, automobiles and technology.
From domestic production to global markets
The latest FDI figures come alongside a broader shift in India’s manufacturing ambitions. Goyal has said the focus of Make in India has expanded beyond meeting domestic demand towards building products and capabilities for global markets.
The government has also highlighted the expansion of digital commerce as part of this broader business ecosystem. More than 470 crore orders have been placed through the Open Network for Digital Commerce (ONDC), according to Goyal.
However, the gross FDI figure should be viewed separately from net FDI, which accounts for repatriation and other outward flows. RBI data showed that net FDI stood at $7.65 billion in FY2025-26, while gross inward FDI reached the record $94.53 billion.
The record gross inflow nevertheless marks a significant expansion in the volume of foreign capital entering India. As the country continues to build manufacturing capacity, improve business infrastructure and integrate with global supply chains, FDI remains an important source of capital, technology and international business linkages.