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Guide

Why India

Growth, investment flows, where FDI goes, infrastructure and the trade agreements that shape market access.

7.7%Real GDP growth, FY2025-26 (provisional)
USD 94.5 bnTotal FDI inflow, FY2025-26 (provisional)
USD 3.92 tnNominal GDP, FY2025-26 (IMF WEO, April 2026)

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Cover of the IMC brief: Why India

In this guide

In this guide

5 pages.

Overview

Why India: the investment case in brief

India's economy grew 7.7% in FY2025-26 and drew USD 94.5 bn of total FDI. Most sectors take 100% foreign ownership without prior approval. This page sets out the numbers, the open and closed doors, and the points to test before committing.

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FDI data

FDI into India: the data

India received USD 94.5 bn of total FDI in FY2025-26, up 17%, with USD 58,846 mn of equity. Singapore and the US led as sources, software and services as sectors, and Maharashtra and Karnataka as destinations. All figures are provisional.

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Trade agreements

Trade agreements: what is in force

Four agreements took effect between October 2025 and October 2026: EFTA, Oman, the UK and, from 20 October 2026, New Zealand. The EU agreement is announced but unsigned, and the US interim deal is a framework. This page sets out status, dates and the terms that matter to investors.

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Infrastructure

Infrastructure and ease of business

Union Budget 2026-27 raises public capital expenditure to ₹12.2 lakh crore and adds rail, freight and waterway projects. Alongside, Invest India counts more than 47,000 compliances cut, and the National Single Window System and Project Monitoring Group handle approvals and escalation.

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Where FDI goes

Where FDI goes: states compared

Maharashtra and Karnataka together took over half of India's USD 58,846 mn of FDI equity in FY2025-26. This page sets out each major state's share, the sectors it is known for and the policies it has published recently, as a starting point for a location shortlist.

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Updates

Recent changes

All changes
  1. medium impact
  2. India–New Zealand FTA to enter into force on 20 October 2026Trade · News On AIR, 21 Sep 2026; PIB, 27 Apr 2026
    low impact
  3. high impact
  4. India–Oman CEPA enters into forceTrade · PIB, 3 Jun 2026
    low impact
  5. US–India interim trade framework announced with an 18% US tariffTrade · PIB, US–India Joint Statement, 7 Feb 2026
    medium impact

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