NEW DELHI, October 16 — The Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, on Friday released the official quarterly foreign direct investment bulletin, reporting that FDI equity inflows expanded by 26.4 percent year-on-year to reach $16.17 billion in the first quarter of FY 2026-27 (April–June).
Sectoral breakdowns indicated that computer software and hardware attracted the largest chunk of overseas capital at $4.2 billion, followed by services (financial, banking, and professional consulting) at $3.1 billion, telecommunications at $1.8 billion, and non-conventional green energy infrastructure at $1.4 billion. Geographically, Maharashtra, Karnataka, Gujarat, and Tamil Nadu accounted for over 72 percent of total foreign equity commitments.
DPIIT leadership emphasized that structural supply-side transformations—underpinned by 14 operational Production Linked Incentive (PLI) schemes and rapid digitisation through the National Single Window System (NSWS)—have cemented India's standing as the primary beneficiary of global 'China-Plus-One' supply chain diversifications.
The regulatory architecture of Foreign Direct Investment routes (Automatic vs Government Approval routes) under the Foreign Exchange Management Act (FEMA) 1999, the distinction between FDI and Foreign Portfolio Investment (FPI), and Bilateral Investment Treaties (BITs) represent foundational knowledge across UPSC Civil Services (GS-III: Economic Development & Investment Models) and economic regulatory exams.