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Maharashtra and Karnataka accounted for 51% of the foreign direct investment (FDI) inflows into the country during the last financial year 2024-25, according to the latest data of the Department for Promotion of Industry and Internal Trade (DPIIT).

Maharashtra attracted maximum foreign inflows at $19.6 billion and accounted for 31% of the country’s total FDI during April-March 2024-25.

Karnataka received $6.62 billion overseas investments during the last fiscal year, the data showed.

The two States were followed by Delhi ($6 billion), Gujarat ($5.71 billion), Tamil Nadu ($3.68 billion), Haryana ($3.14 billion), and Telangana ($3 billion).

Improvement in infrastructure

According to experts, the main reason for the maximum inflows in Maharashtra and Karnataka is substantial improvement in infrastructure. Infrastructure has improved considerably and that is making them attractive destinations for FDI in India, an economist said.

Total FDI, which includes equity inflows, reinvested earnings and other capital, grew 14% to $81.04 billion during the last financial year. It is the highest in the last three years. The same stood at $71.3 billion in 2023-24.