AI-vision to investment magnet: Karnataka records sharpest FDI jump as CM Shivakumar pushes development agenda

Karnataka has posted the sharpest jump in foreign direct investment among major states, with inflows nearly doubling from US$6,619 million to US$12,939 million in FY 2025-26. The figures strengthen its position as India’s second-largest FDI destination and underline how the state is translating its tech-led advantage into a larger investment story.

The FDI inflows have risen sharply at a time when investors are becoming more selective about where they place long-term capital. The state government officials attribute the rise to policy stability, a deep talent pool, and targeted work in technology and infrastructure. For businesses, the implication is clear — Karnataka is not just retaining its existing edge, it is expanding it.