In 2024-2025, the total volume of FDI in India amounted to over $80.5 billion, despite global economic challenges. According to the World Investment Report 2025 prepared by UNCTAD, global FDI flows decreased by 11% in 2024; however, there is stable interest from investors in developing countries, including India.
This year, many large international companies announced their intentions to invest in India. For example, Microsoft CEO Satya Nadella announced an investment of $17.5 billion by 2030 in the development of infrastructure and new technologies focused on artificial intelligence. Amazon also plans to invest $35 billion over the next five years, expanding its presence across various sectors from quick commerce to cloud solutions and AI.
Google plans to allocate $15 billion to establish an AI hub in India, while Apple and Samsung continue to increase their manufacturing capacities in the country. Arcelormittal Nippon Steel India plans to increase the production of coated steel to 1 million tons per year by 2026.
According to the National Statistical Office (NSO), India's economy grew by 8.2% in the second quarter of 2025-26. The government also introduced the Jan Viswas bill aimed at simplifying business operations and decriminalizing minor offenses.
Experts emphasize that strong economic fundamentals and consistent reforms will contribute to the inflow of foreign investments in 2026. "India continues to diversify its economic ties, making it more attractive for long-term FDI in services, software, and electronics," says Deloitte India economist Rumki Majumdar.
Rudra Kumar Pandey, a partner at Shardul Amarchand Mangaldas & Co, adds that investments from Gulf Cooperation Council (GCC) countries are becoming an increasingly important source for India. "The high-tech services sector will remain a primary focus for foreign investments," he noted.
Mauritius and Singapore hold leading positions among investors in India, accounting for approximately 49% of the total FDI. The United States ranks second (10%), followed by the Netherlands (7.2%), Japan (6%), and the United Kingdom (5%). Key areas attracting foreign investments include services, software and equipment development, telecommunications, trade, and automotive manufacturing.
Foreign direct investments in India are regulated automatically in most sectors; however, in some areas, such as telecommunications and pharmaceuticals, government approval is required. At the same time, in certain categories, such as gambling and tobacco production, FDI is prohibited.
Foreign direct investments play a key role in India's economic development, as the country needs significant investments in infrastructure to stimulate growth. The inflow of foreign funds also helps maintain currency stability and balance of payments.
Source: https://timesofindia.indiatimes.com/business/india-business/strong-fundamentals-big-ticket-investments-to-propel-indias-fdi-in-2026/articleshow/126201171.cms
