THIRUVANANTHAPURAM: Keralam attracted Rs 4,646 crore in foreign direct investment (FDI) equity in April-June 2026, more than the state’s annual inflow in each of the previous two financial years, according to data with the department for promotion of industry and internal trade (DPIIT).
The state received Rs 3,281 crore in financial year 2025-26 and Rs 3,330 crore in 2024-25. The April-June inflow this year was nearly three times the Rs 1,624 crore received in the same quarter last year. India’s FDI equity grew 17 % during the period.
FDI equity is the fresh capital foreign investors bring in by buying shares of Indian companies. This is different from the total FDI which also includes reinvested profits and loans from parent companies. The DPIIT maintains state-wise figures only for equity.
Rathan Kelkar, secretary to the chief minister, said the state was seeing investor interest in several sectors.
“Keralam is witnessing encouraging investor interest across key priority sectors including ports, aviation, tourism, culture and healthcare, reflecting growing confidence in the state’s investment potential,” Kelkar said.
He, however, did not specify the investments behind the April-June inflow.
“The proposed SARAL legislation, expected to be passed in the current assembly session, along with land-related legislative reforms under consideration, will help address longstanding bottlenecks,” he added.
The state’s share of India’s FDI equity inflow rose to 2.49% in April-June 2026, from 1.02% a year earlier. It ranked eighth among states for the quarter.
C Veeramani, director of the Centre for Development Studies, welcomed the rise, saying it could indicate a positive change in the state’s investment climate. At the same time, he cautioned against reading too much into a single quarter.
“Quarterly figures are volatile. Even a single deal can change the picture. The figures become meaningful only when the inflow is sustained. It is good if we can maintain or further increase this level,” he said.