Invest India Grounds $6.1 Billion FDI in FY26, Creating 31,000 Jobs

Grounded investments have registered a nearly threefold growth over FY 2024-25, while the average deal size has increased by 1.8 times, indicating a shift towards higher-value investments.

European nations top the list with approximately 42 per cent of the total grounded investment value, while continued participation from the United States, Japan, South Korea, Australia, and other key source markets affirms broad-based international confidence in India's regulatory environment and manufacturing capabilities, it said. FDI from emerging source nations such as Brazil, New Zealand, and Canada indicate diversification in the country's investment base, it added.

On India's policy environment, Secretary, DPIIT, Amardeep Singh Bhatia said: "India's investment momentum is a direct outcome of policy clarity, institutional commitment, and the trust global investors place in our systems. The $6.1 billion grounded by Invest India in FY 2025-26 reflects the strength of India's regulatory environment and the depth of its economic transformation. DPIIT remains committed to further simplifying processes and ensuring that investments translate into jobs, innovation, and long-term value."

Chemicals, pharmaceuticals & biotechnology, and food processing sectors account for approximately 65 per cent of grounded investments, driven by high-value projects aligned with India's manufacturing and value-addition priorities. Emerging sectors such as electronics system design and manufacturing (ESDM), aerospace & defence, and auto, as well as EV segments, also recorded significant activity, the statement said.

FY 2025-26 witnessed continued geographic diversification of investments across states. Gujarat, Madhya Pradesh, Maharashtra, and Andhra Pradesh emerged as key hubs driven by high-value projects, while Rajasthan and Uttar Pradesh recorded strong grounding activity. Established destinations such as Tamil Nadu, Karnataka, Haryana, and Delhi continued to anchor major investment inflows. The grounding of projects in Assam, Bihar, and Sikkim indicates the broadening of the investment landscape. In terms of employment generation, Madhya Pradesh emerged as the leading state, followed by Andhra Pradesh, Rajasthan, Telangana, and Maharashtra, the statement said.

These trends reflect the cumulative impact of India's landmark policy initiatives, including Make in India, Production Linked Incentive (PLI) Schemes across 14 key sectors, and sustained infrastructure development programmes, which have strengthened India's position as a globally competitive and reliable manufacturing destination.

Invest India has strengthened end-to-end facilitation across the investment lifecycle, from early-stage advisory to post-investment aftercare. It has adopted a network-led ecosystem approach by engaging with investors' suppliers, buyers, and extended value chains to build integrated industrial ecosystems. The agency is also supporting foreign companies exploring alternative entry routes, such as joint ventures, by facilitating partnerships with credible domestic players. These interventions have resulted in improved investment conversion and scale, the statement added.

- IANS