India’s foreign direct investment equity inflows rose 6 percent to $19.81 billion in the April-June quarter of FY27, up from $18.62 billion a year earlier, according to DPIIT data.

Japan emerged as the top investor with $5.71 billion, followed by Singapore at $5.22 billion. Inflows from the United States plunged more than 76 percent to $1.34 billion, while the UAE’s fell to $868 million.

The services sector drew the most investment at $7.04 billion, followed by computer software and hardware at $2.84 billion and trading at $1.92 billion. Total FDI, including reinvested earnings, rose 22 percent to $30.65 billion.

Tamil Nadu led states with $5.9 billion, helped by a large Japanese investment in Shriram Finance, followed by Maharashtra at $4.22 billion, Delhi at $2.67 billion, Karnataka at $2.11 billion and Gujarat at $1.3 billion.

The figures show a sharp reshuffling of India’s investment sources as global firms reassess supply chains, with Japanese capital now outpacing American money by a wide margin.