In a significant shift in foreign direct investment (FDI) dynamics, the United States has overtaken Mauritius to become India's second-largest source of FDI, with inflows exceeding $11 billion in the financial year 2025-26. This increase reflects a more than doubling of equity investments from the US, as companies opt for direct investment into India rather than routing funds through tax-friendly jurisdictions. Singapore remains the top source of FDI, maintaining a steady rise in investments and accounting for about one-third of total equity inflows. Commerce and Industry Minister Piyush Goyal highlighted that American companies have pledged approximately $60 billion in investments recently, showcasing the growing interest of the US in the Indian market. Additionally, there has been a notable increase in investments from the Cayman Islands, which surged from $371 million to $2.1 billion. Sectoral trends indicate that computer hardware and software have become the leading recipients of foreign investment, partly due to rising investments in data center infrastructure. The Indian government is actively working to attract investments across various sectors to strengthen domestic capabilities and ensure self-reliance.