Invest India is likely to facilitate around $8-9 billion in foreign direct investment (FDI) in FY 26-27, with a significant portion expected to come from 20-25 global companies considering investments in India, especially in the districts.
Global investors have expressed interests in sectors like data centres, ESDM (Electronics), pharma & biotech, medical devices, aerospace & defence, chemicals & energy, as confirmed by Invest India, the National Investment Promotion and Facilitation Agency under the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce. While the government is focusing to channelize the investments into specific projects, global companies weigh location choices, regulatory requirements and the ease of doing business across Indian states.
Invest India CEO Nivruti Rai said, "Capital follows conviction. Global boards are deciding where to build the world's next critical capabilities, and they're choosing India. Our responsibility is to turn that choice into action, and make them successful, gaining and retaining their trust.”
According to Invest India, the speed of government response has been a critical factor in investment facilitation, including identifying the underlying problem, locating the appropriate authority and ensuring that issues are resolved. Some of the recent investments include German life sciences company Merck KGaA's investment of around 13 million euros in biological buffer manufacturing alongside the facility's existing chemistry, specialty chemicals, custom synthesis, and catalog product capabilities at its Jigani facility in Karnataka.
Dhananjay Singh, Managing Director, Life Science business of Merck, India said, “Merck is investing about €13 million in its Jigani site to strengthen regional manufacturing and expand biology and chemistry capabilities across India and the Asia-Pacific region. This investment will reinforce our global supply chain and support the 'Make in India' initiative.” Belgian food processing company
Agristo has also invested in expanding its operations in Bijnor, Uttar Pradesh. Government is working on measures to provide clear guidance on where to start – and how to navigate the processes for the first time investors and for the existing ones planning to expand, the focus is majorly on faster dispute resolution to ensure the investment interest is converted into actual commitments.
Both categories of investors also seek support in making a case for India before their global boards, particularly when competing with other investment destinations for capital allocation. With an aim to boost FDI inflow to India, DPIIT has introduced series of changes in the norms which include defined 12-week timeline and a fully paperless application system, relaxation in Press Note 3 norms. Also, with several FTAs being signed with larger economies like the UK, New Zealand, the government is aiming to scale up investments from these regions.
Last year, Invest India facilitated the grounding of 60 projects worth over $6.1 billion, with Europe accounting for 42% of the total investment.
