Singapore was the top source of foreign direct investment (FDI) equity inflows in April-December FY26 at $17.6 billion, with a 37% share of the total, data released by the Department for Promotion of Industry and Internal Trade (DPIIT) showed. The US and Mauritius were the next two sources, accounting for 16% and 10%, respectively.

The FDI from offshore tax haven Cayman Islands rose five times to $2 billion from $422 million in 2024. Another tax haven from Cyprus invested $1.4 billion in India compared to $1.2 billion in 2024 while inflows from Luxembourg rose to $545 million from $352.67 million in the same period.

India received $47.87 billion of FDI equity inflows in April-December FY26 of which $7.8 billion came from the US and $4.8 billion from Mauritius. Japan and the UAE were also among the top five investor countries.

India and Norway explored sectoral cooperation across energy, maritime, pharmaceuticals and biotech, including discussions on oil and gas, offshore technologies, renewable energy, green hydrogen, low-carbon solutions, digitization of port operations, and sustainable shipping practices, the government said Friday.

Norway, a member of the European Free Trade Association (EFTA), expressed its growing investment interest in India through Government Pension Fund Global and Norfund’s investments in renewable energy projects.

The issues were discussed during the third session of the India–Norway Dialogue on Trade and Investment on April 16.

India may allow foreign direct investment (FDI) in ecommerce inventory solely for export purposes with stringent safeguards such as separate warehouses to differentiate such stocks from those destined for the domestic market, said a government official.

India's strong economy cemented by robust macros is facing a catch 22 situation: low net foreign direct investment (FDI) inflows despite rising gross inflows. Net FDI into India contracted for a fifth straight month in January as gross inflows fell 6.9% on-year to around $5.7 billion, but the amount repatriated out of the country nearly doubled to $4.9 billion.

In a unique move to push investments into India the Japanese Foreign Ministry will create a new centre on Wednesday to assist Japanese companies looking to expand into the big market.

This Centre will assist Japanese companies to handle a variety of state-level regulations, a lack of transparency in the application of the law, and a complex tax system in India, according to persons familiar with the developments.

The new centre in the Japanese Foreign Ministry will also assist cooperation in sectors of artificial intelligence, startups and critical minerals, ET has learnt.

At the last annual Summit held in August 2025, New Delhi and Tokyo had set a goal of achieving 10 trillion yen ($62.6 billion) in private-sector investment in India over the next decade.

Japanese companies have been relatively slow in expanding into India. There were 1,434 Japanese companies here in 2024, notwithstanding the depth of political ties.

The amendment of the Press Note 3 of 2020, provides for a definition and criteria for the determination of beneficial ownership under the Prevention of Money Laundering Rules, 2005 for countries sharing land border with India (LBC), Minister of State for Commerce and Industry Jitin Prasada told Rajya Sabha.

In the current environment of global uncertainty and volatile capital flows, foreign investment remains critical for India’s growth trajectory. Both Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI) play an important role in supporting capital formation, technology transfer and integration with global value chains.

Over the past decade, India has made significant progress in rationalising policies governing these flows. Today, most sectors allow up to 100% foreign ownership under the automatic route, reflecting the country’s broader effort to simplify investment frameworks and attract global capital.

However, an important shift occurred in April 2020 when the Government of India introduced the Press Note 3 (PN3) framework.

India will offer faster approvals for investments involving minority Chinese stakes across a wider range of sectors, a Reuters report said, quoting Industry Secretary Amardeep Singh Bhatia

The report stated that India has eased investment rules to support domestic manufacturing and attract foreign capital, particularly for proposals involving small Chinese shareholdings.

Under the new framework, India has scrapped the blanket government approval requirement for firms with up to 10 per cent Chinese ownership. Under the new framework, the investments in sectors such as electronics, batteries, rare-earth magnets, and processing will be cleared within 60 days, provided Indian residents retain majority control.

The government has eased norms for foreign direct investment from all countries that share land borders with India, including China, a PTI report said.

As per the report, the decision was taken at a Union Cabinet meeting chaired by Prime Minister Narendra Modi. The report added that under the new arrangements, foreign companies having shareholders from these countries required mandatory government approval for investments in India in any sector.
The report elaborated that the press note 3 of 2020 has been amended in this regard. The amendment will be applicable to countries that share land borders with India. These countries are China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar, and Afghanistan.

China’s FDI in India
China ranks 23rd with a 0.32 per cent share ($2.51 billion) in the total FDI equity inflows reported in India from April 2000 to December 2025.

Data from the RBI’s Bulletin show that net foreign direct investment (FDI) remained negative for the fourth consecutive month in December 2025 due to a rise in repatriation and outward FDI.

Persistent Outflows
In December, net FDI outflow was $1.6 billion, following $475 million in November, and $1.7 billion each in September and October last year. However, net FDI rose to $4 billion during April-December 2025 from US$ 0.6 billion during the same period last year.

Strong Gross Inflow
Gross inward FDI rose to $73.3 billion during April-December 2025 from $63.1 billion during the same period last year.

The government has created a special window for Foreign Direct Investment (FDI) of up to 20% in Life Insurance Corporation of India (LIC) through changes in the FDI Policy. This FDI in LIC has been allowed through the automatic route. The amendments to the FDI Policy by the Department for Promotion of Industry and Internal Trade (DPIIT) through Press Note 1 of 2026. The changes in the policy would also allow for FDI up to 100% in an insurance company through automatic route. Closing the Float Gap FDI limit will aid the offer for sale (OFS) in LIC, a large stock which commands a market cap of around Rs 5.6 lakh crore. The OFS is required to help the company meet the minimum public shareholding norms.

The government is examining a broad rationalisation of foreign direct investment (FDI) rules, covering listed and unlisted companies, company-level foreign holding caps, downstream investment norms, and pricing guidelines for cross-border share transfers. The proposed overhaul is part of a comprehensive review of the Foreign Exchange Management Non-debt Instruments Rules, 2019 (NDI Rules), to take into account changes in investor profiles, deal structures, and capital markets. The changes are also expected to ease foreign investments and capital inflows into the country while keeping regulatory oversight intact and more pragmatic. “These are only a few of the representations that the government has received. Consultations will be done, and all issues will be reviewed to bring more clarity and ease of doing business for investors,” a senior official said.

With foreign ownership limits lifted and competition set to intensify, India's insurance sector is entering a new phase. In a conversation with ET, Life Insurance Corporation of India's CEO & MD R Doraiswamy discusses what the Insurance Amendment Act means, why insurance penetration is slipping, and how the state behemoth is expanding by focusing on the right product mix. Edited excerpts: What do you make of the recent changes to the Insurance Act, especially the clause that allows 100% foreign ownership? Two changes stand out: allowing 100% equity and enhanced regulatory powers. Both are in the right direction. If foreign ownership was a constraint for companies entering India, its removal opens the door for new players and expansion. When limits were raised from 49% to 74%, capital inflows were limited, so this move (100% FDI in insurance companies) could make a bigger difference. Stronger regulatory powers will also help protect policyholders. Overall, these are positive developments.

The Indian government is actively conducting inter-ministerial discussions to increase the foreign direct investment (FDI) ceiling in state-owned banks from the current 20% to 49%, financial services secretary M. Nagaraju said on Monday, reported Reuters. “The government is holding inter-ministerial consultations to raise the FDI limit in state-run banks to 49% from 20%,” he said. Budget 2026 Highlights: Here's the fine print ET had earlier reported that the finance ministry has been consulting the Reserve Bank of India (RBI), the country’s banking regulator, over the past few months, and that the proposal has not yet been finalised, sources said. Foreign investor appetite for India’s banking sector has been strengthening, underscored by Dubai-based Emirates NBD’s $3 billion acquisition of a 60% stake in private lender RBL Bank.

The FDI inflows to India in 2025 surged by 73 per cent to USD 47 billion, mainly due to large investments in services and manufacturing, supported by policies aimed at integrating the country into global supply chains, the UN said. The Global Investment Trends Monitor, released by the United Nations Conference on Trade and Development (UNCTAD), stated on Thursday that the Foreign Direct Investment (FDI) inflows to China declined for the third consecutive year, falling by 8 per cent to an estimated USD 107.5 billion. "FDI inflows to India surged by 73 per cent to USD 47 billion, mainly due to large investments in services - including finance, IT, and R&D - as well as manufacturing, supported by policies aimed at integrating India into global supply chains," UNCTAD said.

A recent report by Reuters indicated that the Government may plan to revise caps for foreign investors in the defence sector. These reforms could come into effect in the next couple of months, Reuters reported, quoting sources. According to Reuters, Government may revise its norms for foreign firms investing in the Indian defence sector. Under these revisions, the cap on foreign direct investment in defence firms, where government permission is not required, would rise to 74% from the current 49%, Reuters stated quotingsources. At present, foreign investors can own up to 74% under the automatic route only when companies are seeking new licences. FDI in defence- Key revisions likely? The Reuters report noted that the government is also discussing the removal of conditions that apply to foreign investment beyond 74%. Currently, investments above this level are permitted only if they “result in access to modern technology,” a wording that many experts have described as vague and ambiguous.

India has received foreign direct investment (FDI) worth USD 51 billion in the last six months, reflecting sustained global confidence in the country's growth story, Amardeep Singh Bhatia, Secretary, Department for Promotion of Industry and Internal Trade (DPIIT), said on Wednesday. While speaking with media persons, he said, "As part of its startup push, DPIIT will organise National Startup Day on January 16, during which 75 Grand Challenges will be launched to foster innovation and problem-solving across sectors." The DPIIT Secretary said the response to the event has been overwhelming, with more than 3,000 requests already received to participate in National Startup Day. To recognise excellence in entrepreneurship, 20 National Startup Awards will also be presented on the occasion, celebrating outstanding contributions to India's startup ecosystem, he said.

India's information and broadcasting sector attracted foreign direct investment (FDI) worth Rs 5,586 crore in the September quarter of FY26, compared with Rs 147 crore in Q2 FY25, driven overwhelmingly by films and advertising as overseas investors doubled down on content, production and post-production assets. FDI inflows into the information and broadcasting sector had fallen sharply to Rs 552.45 crore in the April-June 2025 quarter, compared with Rs 3,374.73 crore in the same period last year, data published by the Department for Promotion of Industry and Internal Trade (DPIIT) showed. According to the data, films and advertising accounted for Rs 5,530 crore of the inflows during the September quarter, while radio broadcasting received Rs 56 crore. The investments were routed through the Reserve Bank of India's (RBI) automatic route, government and acquisition of shares routes.

The government has formally paved the way for 100% foreign ownership in insurance companies, but industry experts say the latest liberalisation is unlikely to trigger a rush of new foreign entrants setting up wholly-owned insurers in the country. The government has notified the Indian Insurance Companies (Foreign Investment) Amendment Rules, 2025, aligning foreign investment limits with the amended Insurance Act, which allows full foreign ownership in insurers. References to the earlier 74% cap have been removed, and foreign direct investment has been expanded to include investments by foreign venture capital investors under the non-debt instruments rules in the Foreign Exchange Management Act. Market participants, however, say structural realities will limit the immediate impact of these reforms.

Gross foreign direct investment (FDI) to India decreased marginally to $6.5 billion in October, from $6.6 billion in September. However, net FDI remained negative during this period to an outflow of $1.5 billion in October though lower than a $2.3 billion outflow in September. Singapore, Mauritius and the US accounted for more than 70% of total FDI inflows with around 60% of the FDI inflows from the financial services sector, followed by manufacturing, electricity, and communication services.