Karnataka attracts $13 billion in FDI as tech, GCC investments surge

Karnataka attracted $13 billion in foreign direct investment (FDI) equity inflows in FY26, driven by strong investments in technology, data centres and global capability centres (GCCs). Maharashtra remained the top FDI destination, though it recorded a decline in inflows during the year.

Haryana, Tamil Nadu, Rajasthan, Uttar Pradesh, Andhra Pradesh and Punjab also registered a significant rise in FDI equity inflows, while Telangana saw a decline, according to official data tabled in Parliament on Tuesday. Gujarat retained the third position, with inflows steady at $5.7 billion.

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The government data covers FDI equity inflows and excludes reinvested earnings, which together constitute total FDI. India received $58 billion in FDI equity inflows during FY26.

Technology continued to drive investments, with funds flowing into data centres, GCCs and e-commerce companies such as Amazon and Flipkart.

Among sectors, computer software and hardware received $13.9 billion, while the services sector, including finance, banking and insurance, attracted $10 billion. Together, these sectors accounted for nearly 40% of India's total FDI equity inflows of $58.8 billion.

The food processing sector emerged as one of the strongest performers, attracting $3 billion in FDI. Other sectors that saw healthy inflows included drugs and pharmaceuticals ($1.9 billion), automobiles ($2.5 billion) and education ($1.3 billion).

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In contrast, air transport received $383 million in FDI, while the electronics sector attracted $1.1 billion.