Fdi

Uttar Pradesh steps up outreach to attract big-ticket global investments

Uttar Pradesh steps up efforts to attract foreign investment in manufacturing, semiconductors, electronics and data centres

Best of BS Opinion: Government must get real on spending

Today's opinions examine India's critical-minerals strategy, FSSAI's food-warning labels, Budget discipline, the RBI's dollar-rupee swaps and lessons from industrial policy

Weekly policy watch: Coal gasification deadline, forex reserves in focus

The week's policy agenda will focus on the coal gasification scheme, possible changes to plantation FDI rules and fresh forex reserves data

Govt mulls FDI liberalisation to bring more crops under plantation sector

The government is considering liberalising foreign direct investment (FDI) norms in the plantation sector by bringing more commercial crops under the ambit, an official said. The Commerce and Industry Ministry is holding stakeholder consultations on the issue, the official said. "We are looking for more FDI liberalisation in the plantation sector like banana," the official added. At present, 100 per cent FDI under automatic route is permitted in the tea sector, including tea plantations, coffee, rubber, cardamom, palm and olive oil tree plantations. Besides these, FDI is not allowed in any other plantation sector/activity. India has received USD 295.23 million FDI in tea and coffee (processing and warehousing coffee), and USD 3.93 billion in rubber goods during April 2000 and March 2026. As per estimates, India is the largest banana producer in the world with over 30 million tonnes annually. Despite being the largest global producer of bananas, India's exports do not reflect thi

India's FDI paradox: Record gross inflows run into investor exits

Record inflows offset by higher repatriation and rising outward investment, keeping net FDI subdued

Centre allows ecommerce firms to hold inventory for exports under FDI rules

The Department of Economic Affairs under the finance ministry has notified changes in Foreign Direct Investment (FDI) norms to allow e-commerce firms to maintain inventory only for export purposes. These firms will have to export goods manufactured or produced in India. Also, FDI in inventory-based e-commerce retailing has not been permitted. The department in a September 2 notification has added a provision in this regard in the Foreign Exchange Management (Non-debt Instruments) Rules, 2019. "An e-commerce entity is permitted to engage in inventory-based model of e-commerce exclusively for the export of goods or products manufactured or produced in India in accordance with the provisions of the Foreign Trade Policy 2023 read with the Handbook of Procedures (HBP) and the Foreign Exchange Management (Export of Goods & Services) Regulations, 2015," the provision says. With this, the decision announced in July has now come into force. "The restrictions on Business to Consumer (B2C) .

Defence FDI rules belong to a different era

As defence and space startups develop globally competitive capabilities, should India create a national-security screening mechanism for foreign investment?

Govt considering easing FDI norms in defence sector for overseas investors

The government is considering liberalisation of foreign direct investment (FDI) norms in the defence sector to further attract overseas investors, an official said on Monday. The Department for Promotion of Industry and Internal Trade is holding stakeholder consultations on the subject. "Some easing in norms is under consideration," the official said. Currently, FDI up to 74 per cent is permitted through the automatic route, while beyond that foreign direct investment is allowed through government approval route wherever it is likely to result in access to modern technology. As per the policy, foreign investment in the sector is subject to security clearance by the Ministry of Home Affairs and as per the guidelines of the Ministry of Defence. India has attracted USD 32.29 million FDI in defence industries between April 2000 and March 2026. The government has taken a series of measures to boost manufacturing in the sector. India's defence budget has increased from Rs 2.53 lakh cro

Streamlined approvals, KYC norms will help boost FDI flows: Piyush Goyal

Improvements in processes and procedures, more efficient KYC norms, and streamlined approvals will facilitate a faster flow of foreign direct investment and provide greater comfort to investors, Commerce and Industry Minister Piyush Goyal said on Thursday. There are very few sectors where foreign direct investment (FDI) is restricted, and the government is open to ideas from industry to further improve the investment regime, he said. "Our focus is on process and procedures...There is a tremendous scope to improve processes and procedures, to help faster flow of FDI and to help give comfort to the investors," Goyal told PTI when asked if the government is considering a proposal to promote ease of doing business for foreign investors. On how the government can streamline processes, he said wherever investments need DPIIT (Department for Promotion of Industry and Internal Trade) or government approvals, processes can be streamlined to make them faster. "We can have faster and more ...

The big BIT reset: Why India is rethinking its investment treaty model

Recent treaties with the UAE and Israel point to shorter arbitration timelines and broader investment protection, even as India retains regulatory safeguards in sensitive areas

Easing of 10% rule on Chinese stake attracts FDI worth ₹4,896 crore

Investments span sectors including information technology, artificial intelligence, manufacturing, pharmaceuticals, data centres and transport services, government says

West Bengal's mega-project ambitions face old and familiar obstacles

The state could be the Bharatiya Janata Party's real test case of its business-friendly policies swot 

Govt mulls raising CCEA approval threshold for FDI proposals to ₹15,000 cr

The government is considering a proposal to raise the threshold for foreign direct investment proposals requiring approval from the Cabinet Committee on Economic Affairs to Rs 15,000 crore from Rs 5,000 crore at present to further improve the country's investment climate, according to sources. The Cabinet Committee on Economic Affairs (CCEA) is a high-level committee headed by Prime Minister Narendra Modi. Its members include key Union Cabinet ministers such as the Home Minister and Finance Minister. As per the existing foreign direct investment (FDI) policy, in case of proposals involving total foreign equity inflow of more than Rs 5,000 crore, the competent authority places the application for consideration of the CCEA. Below this limit, respective line ministries take a decision. The existing limit has remained unchanged since November 2015. Sources said that prevailing economic conditions, inflation, the growing scale of investments over the years, and the objective of promoti

India's insurance sector set for 'massive' growth despite risks: S&P

India's insurance sector is poised for 'massive' long-term growth, supported by structural reforms, low insurance penetration, and a favourable regulatory environment, but macroeconomic headwinds and profitability pressures remain key risks, S&P Global Ratings said on Thursday. In a report titled 'India Insurance Sector Trends', S&P said favourable regulatory reforms are attracting foreign capital and accelerating M&A activity in the sector. "Accelerated industry reforms and low penetration levels to drive massive sector growth in India. Liberalization, competition and regulatory changes will shape the insurance sector's development," the report said. The government had earlier this year approved 100 per cent foreign direct investment (FDI) in the insurance sector under the automatic route. S&P said both life and non-life insurance sectors have growth potential, but profitability of non-life insurers could continue to be strained as pricing philosophies lean heavily on

Foreign etailers told to set up separate export-only units in India

The DGFT has notified a framework requiring foreign-owned e-commerce firms to create separate legal entities for inventory-based exports of Indian-made goods under the revised FDI policy

Six issues impeding foreign investors in India need urgent attention

There is no single policy intervention that will alter this trajectory. We must assess the entirety of foreign firms' interaction with the Indian state

India okayed just one FDI proposal from China, 13 from Hong Kong in FY26

India approved just one Chinese FDI proposal worth Rs 1 crore, while clearing 13 applications from Hong Kong worth Rs 610.42 crore in the last financial year, according to official data. These approvals are important as investments from countries sharing a land border with India have been subject to prior government approval since April 2020 under Press Note 3 of the Department for Promotion of Industry and Internal Trade (DPIIT). The measure was introduced to curb opportunistic takeovers and acquisitions of Indian companies during the COVID-19 pandemic. Overall, the government has approved 63 FDI (foreign direct investment) proposals worth Rs 10,292.67 crore, or USD 1.18 billion, during April 2025-March 2026, according to the DPIIT data. Singapore emerged as the largest source of approved FDI proposals in value terms, with five proposals worth Rs 3,259.88 crore (USD 382.52 million) receiving clearance. This was followed by the UK, where five proposals worth Rs 2,477.67 crore (USD

FDI policy change set to lift ODOP, handicraft exports via online platforms

The decision to permit FDI in an inventory-based e-commerce model only for export purposes will give a major boost to the shipments of handicrafts and ODOP goods, an official said. One District One Product (ODOP) is an initiative of the Department for Promotion of Industry and Internal Trade (DPIIT) for promotion of at least one product from each district of the country. As of date, 1,244 products have been identified across 773 districts in the country under the ODOP framework. "Goods made by MSMEs and handicraft artisans will now get huge opportunities to access global markets through this easing of the FDI norms," the official said, adding extensive consultations have been done to finalise the changes. On July 23, 2026, the government amended the Foreign Direct Investment (FDI) policy and stated that the restrictions on the inventory-based model of e-commerce will not apply in case of exports of domestically manufactured products. The move is aimed at facilitating greater expor

Sectoral, destination shifts mark outward Indian FDI commitments in June

Shifting global supply chains are pushing more Indian firms to build a footprint abroad

Best of BS Opinion: States must reduce debt in face of redemption pressures

From mounting state debt and agricultural research to public asset monetisation, China-linked investment and Tim Berners-Lee's vision for reclaiming the open web