Tamil Nadu has emerged as the top state in India for foreign direct investment (FDI) inflows in the first quarter of the 2026–27 financial year, drawing investments worth Rs 57,011 crore, according to the report.
The figure marks a sharp rise from Rs 25,870 crore recorded in the first quarter of 2025–26, indicating that inflows have more than doubled year-on-year. The state is estimated to have secured around 30% of India’s total FDI during the quarter.
Investments were reported to be higher in the services sector, including finance, banking, insurance, commerce and research. Analysts attributed a major part of the jump to a large investment from Japan’s MUFG into Tamil Nadu-based Shriram Finance.
In contrast, Karnataka’s share of India’s total FDI fell from 31% in FY26 Q1 to 11% in FY27 Q1, while Maharashtra’s share declined from 29% to 21%. Gujarat was reported to have seen a slight increase.
The report also noted that in the current quarter (July–September), Tamil Nadu has attracted two major investments, including from US-based pharmaceutical firm Walgreens and coffee chain Starbucks.
