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May 25, 2026
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US overtakes Mauritius to become India’s 2nd largest FDI source as inflows cross $11 billion mark
The United States has overtaken Mauritius to become the second-largest source of foreign direct investment (FDI) into India in the latest financial year, marking a notable shift in global investment flows into the country, reported TOI.
Equity inflows from the US more than doubled to over $11 billion in 2025-26, as companies increasingly chose to invest directly into India rather than routing funds through tax-friendly jurisdictions used in earlier years. Singapore retained its position as the top source of FDI, recording a steady rise in investments, while Japan also saw a sharp increase driven by large deals in the financial services sector.
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