Quick Summary
The Government reviews the FDI policies on an ongoing basis and makes significant changes from time to time, to ensure that India remains an attractive investor-friendly destination. However, the Government does not fix targets for FDI inflows as FDI is largely a matter of private business decisions. FDI inflows depend on a host of factors such as availability of natural resources, market size, infrastructure, political and general investment climate, as well as macroeconomic stability and inve
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FAQ :
No, the government does not fix targets for FDI inflows, as these are largely determined by private business decisions and various economic and political factors.
The government is removing regulatory barriers, streamlining processes, developing infrastructure, improving logistics, and enhancing the Ease of Doing Business (EoDB) to attract larger FDI.
Yes, transformative reforms have been undertaken across multiple sectors, including increased FDI caps in Defence and Insurance, and liberalised policies for sectors like coal mining, contract manufacturing, and digital media.
The 'angel tax' has been abolished for all classes of investors, effective from 2025-26, to simplify tax compliance for startups and foreign investors.
FDI inflow reported in FY 2024-25 was USD 80.62 billion, the highest in the last three financial years. The first half of FY 2025-26 also saw a provisional inflow of USD 50.36 billion, marking the highest ever for that period.
FDI in the Defence sector is allowed up to 74% through the Automatic Route for companies seeking new industrial licenses, an increase from the previous 49%.
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