India's FDI to touch new high in 2026: Here's why
27 Dec 2025

India's Foreign Direct Investment (FDI) is projected to witness a significant surge in 2026.

The growth will be driven by robust macroeconomic fundamentals, major investment announcements, and continued efforts to enhance the ease of doing business.

The country is also banking on a new generation of investment-linked trade pacts to further boost FDI inflows.

Government's proactive approach to FDI policy
Policy review

The Indian government is committed to making the country an attractive and investor-friendly destination.

The Department for Promotion of Industry and Internal Trade (DPIIT) has been holding stakeholder consultations this year, focusing on ways to boost FDI.

Commerce and Industry Minister Piyush Goyal also held discussions in November, seeking ways to attract more investments by streamlining processes.

India's FDI inflows remain resilient amid global uncertainties
Investment resilience

Despite global uncertainties, India's total FDI inflows for 2024-25 have crossed $80.5 billion. Gross overseas investments between January and October 2025 have also exceeded $60 billion.

DPIIT Secretary Amardeep Singh Bhatia attributed this success to a series of government measures aimed at attracting investments and making India a preferred investment destination.

Free trade agreements and big-ticket investments boost FDI
Trade impact

India's free trade agreement with the four-nation European Free Trade Association (EFTA) is expected to bring in $100 billion in FDI over 15 years.

The pact came into effect on October 1, 2025, with Swiss healthcare giant Roche Pharma announcing a ₹17,000 crore investment in India on the same day.

New Zealand has also committed $20 billion under its trade pact with India, effective from 2026.

Global firms announce major investments in India
Corporate commitments

Several global corporations have announced massive investments in India this year.

Microsoft CEO Satya Nadella has pledged $17.5 billion by 2030 to build infrastructure for an AI-first future.

Amazon plans to invest $35 billion over five years, while Google will invest $15 billion in setting up an AI hub here.

India's economic growth and FDI prospects
Economic outlook

The Indian economy grew 8.2% in the second quarter of 2025-26, according to the National Statistical Office (NSO).

The government has also introduced the Jan Viswas bill to promote ease of doing business by decriminalizing minor industry-related offenses.

Experts believe India's strong economic fundamentals and resilience will contribute to a revival of FDI in 2026.