# India foreign direct investment trends

> Live situation record from CLSTR: https://clstr.news/situations/india-foreign-direct-investment-trends
> Updated: 2026-10-26T12:53:25.000Z. Sources: 2. Developments: 2.

In the first quarter of the 2026-27 fiscal year, Japan emerged as India’s primary source of Foreign Direct Investment (FDI), contributing $5.71 billion in equity inflows. This amount represented approximately 29% of India’s total quarterly equity FDI of $19.81 billion and significantly surpassed Japan’s total investment from the previous fiscal year. This surge is attributed to Japanese companies seeking to diversify supply chains across sectors including automotive, electronics, digital infrastructure, and renewable energy.

Conversely, India’s overseas FDI saw a decline, falling 14% year-on-year to $4.34 billion in September. While equity commitments from Indian companies increased by roughly 25% to $3.26 billion, other categories such as loan commitments and issued guarantees experienced decreases.

## Timeline

### 2026-10-26: India overseas FDI falls to $4.34 billion in September

India's overseas FDI dropped 14% year-on-year to $4.34 billion in September, despite a 25% rise in equity commitments.

2 sources. https://clstr.news/cluster/india-overseas-fdi-falls-to-434-billion-in-september

### 2026-10-11: Japan becomes India's top FDI source with $5.71 billion in Q1

Japan became India's top source of FDI in Q1 FY27, contributing $5.71 billion, nearly 29% of the country's total equity inflows, as companies diversify supply chains into tech and renewable energy.

4 sources. https://clstr.news/cluster/japan-becomes-indias-top-fdi-source-with-571-billion-in-q1

---
Cite as: India foreign direct investment trends. CLSTR, https://clstr.news/situations/india-foreign-direct-investment-trends