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India records highest-ever annual FDI inflow in FY26
Why in News?
India records highest-ever annual FDI inflow in FY26
India recorded its highest-ever annual FDI inflow of $94.53 billion in FY26, taking cumulative FDI since 2014 to $843 billion.
Why it matters: asked in KPSC 2021; factual, Prelims-type
What you need to know
2 min read
The Union Commerce and Industry Minister announced that India recorded its highest-ever annual Foreign Direct Investment inflow in the 2025-26 financial year, at $94.53 billion.
Cumulative FDI into India between 2014 and 2026 has reached $843 billion, touching a record high as inflows accelerated in FY26.
The government attributes sustained FDI growth to ease-of-doing-business reforms and sectoral liberalisation over the past decade.
Sources: Topper IAS editorial (PIB / The Hindu / Indian Express)
Key facts
Remember these
- FDI
- FY26
- Commerce Ministry
- cumulative FDI
Prelims · Mains
How the exam will ask it
Prelims
- FDI, FY26, Commerce Ministry, cumulative FDI
Mains
Use as an example in GA answers (GS Paper III - Economy: Foreign Direct Investment).
PYQ connection
A question UPSC has already asked on this
The sector which attracts the highest FDI equity inflows in India is:
- Telecommunications
- Hotel and Tourism
- Drugs and Pharmaceuticals
- Services
Show answer
Answer: D
Why this matters: today's issue is directly connected to a concept UPSC has already tested. Read the story with this question in mind.
Practise this PYQ →Quick recall
Answer before you reveal
India recorded its highest-ever annual Foreign Direct Investment (FDI) inflow in which financial year, as announced by the Union Commerce and Industry Minister?
- 2025-26
- 2023-24
- 2020-21
- 2018-19
Show answer
Answer: A — 2025-26 is correct: the Commerce and Industry Minister announced that India's FDI inflow in FY26 touched a record $94.53 billion, taking cumulative FDI since 2014 to $843 billion.
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