According to the Department for Promotion of Industry and Internal Trade (DPIIT), Maharashtra and Karnataka jointly attracted 51% of India’s total foreign direct investment (FDI) in FY 2024–25—marking a pivotal shift in regional investment dynamics.
State-wise FDI Snapshot
| State | FDI Inflows (FY 2024–25) | Share of National FDI |
|---|---|---|
| Maharashtra | US $19.6 billion | 31% |
| Karnataka | US $6.62 billion | ~10% |
| Total India | US $81.04 billion | – (14% YoY growth; highest in 3 years) |
Other notable states:
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Delhi: US $6 billion
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Gujarat: US $5.71 billion
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Tamil Nadu: US $3.68 billion
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Haryana: US $3.14 billion
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Telangana: US $3 billion
India’s total FDI of US $81.04 billion represents a 14% year-on-year increase, the highest inflow since FY 2022–23.
Why Maharashtra & Karnataka Lead
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Infrastructure Excellence
• Significant improvements in roads, power, ports, logistics hubs, and industrial clusters have enhanced investor confidence in both Mumbai and Bengaluru. -
Vibrant Economies & Hybrid Ecosystems
• Maharashtra, with Mumbai as its core, is India’s financial nerve centre and hosts world-class SEZs, BSE/NSE, and major enterprises.
• Karnataka is the IT and biotech powerhouse, home to Bengaluru’s innovation hubs and global R&D operations. -
Policy & Ease-of-Doing-Business Reforms
• Both states have proactively simplified rules, facilitated industrial land acquisition, and offered investor incentives to stay globally competitive. -
Macro-Economic Momentum
• The central government’s investor-friendly policies and global uncertainty have steered capital toward India, with these two states as primary beneficiaries.
Voices from the Ground
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Financial analysts noted: “Infrastructure has improved considerably and that is making them attractive destinations for FDI in India.”
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Commerce Minister Piyush Goyal emphasized: “It reflects our long‑term policy clarity, commitment to ease of doing business, and confidence in India’s potential.”
Implications & Forward Outlook
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Deepened Regional Imbalances: With over half the inflows concentrated in just two states, other regions are under pressure to enhance infrastructure and streamline reforms.
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Employment & Innovation Growth: Maharashtra and Karnataka are poised to create thousands of jobs in sectors like manufacturing, finance, IT, and biotech.
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Boost to National GDP: With Maharashtra’s GSDP at ₹42.67 lakh crore and Karnataka’s at ₹28.13 lakh crore in FY 2024–25 (together contributing ~22% to India’s total), FDI inflows significantly fuel national economic growth.
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Competitive Push Elsewhere: Other states—Delhi, Gujarat, Tamil Nadu, Haryana, Telangana—are likely to escalate spending on connectivity and policy advocacy to attract more capital.
Why It Matters
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Reaffirmed Global Trust: A record US $81.04 billion in FDI signals strong international confidence in India’s long-term growth trajectory.
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Strategic Significance: Maharashtra and Karnataka are cementing their positions as India’s flagship investment zones.
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Model for Policy Emulation: Their success stories offer replicable blueprints for infrastructure development and investor engagement across the country.
