FDI

In a decisive move unveiled in the Union Budget 2025–26, the Indian government has lifted the Foreign Direct Investment (FDI) ceiling in the insurance sector from 74% to 100%. Finance Minister Nirmala Sitharaman asserted that this policy shift, now in effect from August 1, 2025, is poised to inject new players into the market, catalyze job creation, and accelerate technology integration. Improved automation promises expedited underwriting and claims processing, reducing costs and enhancing operational efficiency.

India is poised to receive up to $100 billion in foreign direct investment over the next 15 years under a new trade agreement signed with the European Free Trade Association (EFTA). The pact—inked with Switzerland, Norway, Iceland, and Liechtenstein—represents a major step toward enhancing trade flows, easing market access, and integrating India into global value chains.

India’s foreign direct investment (FDI) landscape in the financial year 2024-25 witnessed a significant shift, with Maharashtra and Karnataka together accounting for over half of the country’s total FDI inflows. According to the latest data from the Department for Promotion of Industry and Internal Trade (DPIIT), Maharashtra alone attracted USD 19.6 billion, representing 31 per cent of India’s total FDI, while Karnataka drew in USD 6.62 billion. These figures underscore the states’ growing economic clout, driven by improved infrastructure and robust investor confidence.

India’s attractiveness as a global investment destination continues to strengthen, as evidenced by the country’s receipt of foreign direct investment (FDI) from 112 nations in 2024-25, up from 89 a decade ago. At an FDI roundtable chaired by DPIIT Secretary Amardeep Singh Bhatia, Commerce and Industry Minister Piyush Goyal reiterated the government’s commitment to fostering an environment that prioritizes investor confidence and growth.

Maharashtra has secured a remarkable Rs. 1,64,875 crore in foreign direct investment (FDI) for the financial year 2024-25, accounting for 40 percent of India’s total FDI inflow, according to Chief Minister Devendra Fadnavis. Sharing the data on social media, Fadnavis highlighted the state’s impressive performance in the final quarter of the fiscal year. This surge underscores Maharashtra’s robust investment climate, reaffirming its position as India’s most attractive destination for foreign investors.

India has reaffirmed its strategic stance on foreign direct investment (FDI) from neighboring countries, particularly China, with Commerce and Industry Minister Piyush Goyal declaring that New Delhi has no intention of relaxing the investment restrictions implemented in 2020. Despite China's global economic presence, its share in India’s FDI inflows remains marginal at just 0.37%.