Bengaluru draws ₹98,456 crore FDI, narrows gap with Navi Mumbai

Tech-led investments push Bengaluru to second spot among India’s top FDI destinations as Karnataka records the fastest foreign investment growth nationwide

Bengaluru has strengthened its position as one of India’s leading foreign investment destinations, emerging as the second-largest recipient of foreign direct investment (FDI) during the April to September 2025 period. Official data from the Department for Promotion of Industry and Internal Trade (DPIIT) shows the city attracting FDI inflows worth ₹98,456.9 crore.

This places Bengaluru just behind Navi Mumbai, which topped the list with ₹99,527.9 crore during the same period. The narrow difference of around ₹1,070 crore highlights Bengaluru’s growing competitiveness with the country’s most established commercial centres.

Delhi ranked a distant third, drawing foreign investment worth ₹34,047.2 crore, followed by Gurgaon with ₹28,799.1 crore and Ahmedabad at ₹16,275.1 crore. The figures underline a sharp concentration of global capital in a limited number of urban districts.

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Officials attributed Bengaluru’s strong showing to sustained investments in computer software and hardware, a segment that continues to remain among the top three FDI-attracting sectors in India. The city’s dominance in IT services, product engineering, cloud platforms and data infrastructure has played a central role in driving inflows.

Industry observers noted that Bengaluru’s mature innovation ecosystem, deep talent pool and strong presence of multinational companies have enabled it to attract both services-led and platform-based investments. This balance has helped the city retain its edge despite global economic uncertainty.

At the state level, Karnataka has emerged as one of India’s fastest-growing destinations for foreign investment. DPIIT data shows FDI inflows into the state surged from $3,542 million in April–September 2024 to $11,525.1 million in April–September 2025, marking a year-on-year growth of 225.3 percent, the highest among the top six FDI-receiving states.

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In absolute terms, Karnataka added nearly $8 billion in fresh foreign investment within six months. While Maharashtra remained the country’s largest FDI recipient with $13,509.3 million, its growth remained almost flat at 0.3 percent. Tamil Nadu and Haryana recorded strong growth of 168 percent and 169 percent respectively, while Delhi saw a moderate rise of 23 percent. Gujarat, however, witnessed a sharp decline of nearly 39.5 percent, indicating a shift in investor preference towards technology- and services-driven states.

Long-term trends further reinforce Karnataka’s strong position. Between April 2000 and June 2025, the state attracted cumulative FDI equity inflows of ₹4,94,318 crore, or $63.34 billion, accounting for 21 percent of India’s total foreign investment during the period.