Top 10 Indian States/UTs by FDI Equity Inflows in FY 2024–25

Foreign Direct Investment (FDI) plays a crucial role in shaping the economic landscape of a country. In India, FDI not only brings in capital but also technological know-how, management expertise, and access to international markets. The Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry releases detailed data on FDI equity inflows, providing insights into which regions attract the most foreign investment.

For the fiscal year 2024–25 (April 2024 to March 2025), the top 10 Indian states and Union Territories (UTs) have emerged as leading destinations for FDI. These states have showcased a conducive business environment, improved infrastructure, stable governance, and progressive industrial policies.

1. Maharashtra

Maharashtra continues to dominate India’s FDI inflows, accounting for approximately 31% of the country’s total FDI equity inflows in FY 2024–25. The state received an estimated ₹1.63 Lakh Cr in FDI during this period.

Mumbai, Pune, and Nagpur serve as key commercial and industrial hubs. The state has strong industrial bases in sectors such as finance, automotive, information technology, pharmaceuticals, and entertainment. It has also taken proactive steps in streamlining procedures for investment approvals and digitizing land allotment.

2. Karnataka

Karnataka retained its position as the second-largest recipient of FDI, attracting around ₹54,946 Cr. Bengaluru, its capital, is globally recognized as India’s Silicon Valley.

The state’s strengths lie in its thriving IT/ITES industry, biotechnology sector, and a highly skilled workforce. Karnataka also houses several R&D centers of multinational corporations and start-up incubators. Pro-investor policies, single-window clearances, and a technology-driven ecosystem have helped Karnataka maintain its position.

3. Delhi (NCT)

Delhi, including parts of the National Capital Region (NCR), saw ₹49,800 Cr in FDI inflows. Its central location, proximity to the Union Government, and strong service-sector orientation make it a prime choice for foreign investors.

Delhi’s NCR region, encompassing Gurugram and Noida, is home to hundreds of multinational corporations, real estate developers, and tech firms. FDI here primarily flows into finance, telecommunications, retail, and infrastructure development.

4. Gujarat

With inflows of ₹47,393 Cr, Gujarat ranked fourth on the list. The state has seen rapid industrialization over the last two decades and has emerged as a key investment destination, particularly in sectors such as petrochemicals, automobiles, ports, and renewable energy.

The Gujarat International Finance Tec-City (GIFT City) is India’s first operational smart city and international financial hub. Its Special Economic Zones (SEZs) and industry-friendly policies make Gujarat attractive to global investors.

5. Tamil Nadu

Tamil Nadu attracted ₹30,544 Cr in FDI during FY 2024–25. The state is a manufacturing powerhouse, particularly in the automobile, electronics, textiles, and energy sectors. Chennai, Coimbatore, and Hosur are major industrial zones with excellent connectivity and skilled human capital.

The state government’s proactive stance on green energy, EV manufacturing, and port infrastructure has further elevated Tamil Nadu’s attractiveness as an investment destination.

6. Haryana

Haryana received an estimated ₹26,062 Cr in FDI, with Gurugram and Faridabad leading the way. Known for its industrial clusters, Haryana has significant presence in automobile manufacturing, food processing, and technology parks.

Strategically located near Delhi, Haryana benefits from NCR spillovers and enjoys world-class road and logistics connectivity. The state’s single-window clearance system and investor summits have created a business-friendly image.

7. Telangana

Telangana garnered ₹24,820 Cr in foreign investment. Hyderabad has become a leading tech and pharmaceutical hub, drawing significant investments in life sciences, IT, and electronics.

The state government’s policies, such as the TS-iPASS (a fast-track approval system), have dramatically cut red tape. Mega projects like Pharma City and Genome Valley continue to attract global interest.

8. Uttar Pradesh

Uttar Pradesh, India’s most populous state, made a strong showing with around ₹3,619 Cr in FDI inflows. While historically not a top FDI recipient, recent infrastructure development, expressways, and a renewed focus on manufacturing and electronics have improved the state’s appeal.

Noida and Greater Noida are key areas seeing IT, electronics, and real estate-driven investments. UP is also home to over half of India’s mobile phone manufacturing.

9. Rajasthan

Rajasthan secured ₹3,104 Cr in FDI, with key contributions from sectors such as renewable energy, minerals, cement, and defense manufacturing. The state is endowed with natural resources and has been working on solar energy parks and large-scale industrial zones.

The Delhi-Mumbai Industrial Corridor (DMIC) passing through Rajasthan has also spurred industrial growth. State-sponsored investor meets and ease-of-doing-business initiatives are beginning to yield results.

10. Jharkhand

Although at the lower end of the top ten list, Jharkhand received around US $0.007 billion in FDI. Rich in minerals and raw materials, the state is focusing on mining, metallurgy, and manufacturing.

Recent efforts to improve policy transparency, infrastructure, and law enforcement have started to pay off. Industrial areas such as Jamshedpur and Ranchi are being developed with a long-term vision.

Why These States Attract FDI

The common thread among these top performers includes:

  • Stable Governance: States with politically stable and investor-friendly governments attract more long-term investment.
  • Robust Infrastructure: Ports, airports, logistics parks, and digital infrastructure are key factors in drawing FDI.
  • Industry Clusters: Special Economic Zones (SEZs), industrial corridors, and dedicated parks help attract sector-specific FDI.
  • Ease of Doing Business: Simplified registration processes, online clearances, and single-window systems encourage global investors.
  • Urbanization and Workforce: Metro cities with skilled labor, good living standards, and vibrant ecosystems are preferred by foreign companies.

Conclusion

The distribution of FDI across Indian states highlights the regional diversity of the country’s economic development. While Maharashtra, Karnataka, and Delhi remain perennial leaders, other states like Gujarat, Tamil Nadu, and Telangana are fast catching up. Meanwhile, emerging states such as Uttar Pradesh and Rajasthan are beginning to see their potential realized through sustained policy reforms and infrastructure upgrades.

India’s FDI strategy is increasingly moving towards regional balance. With improvements in ease of doing business and targeted reforms, more states are expected to rise in the FDI rankings in the coming years. For now, these top ten destinations represent India’s most dynamic regions for global investment.

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