Investments/Developments

India has become an attractive destination for FDI in recent years, influenced by several factors which have boosted FDI. India ranked 40th in the World Competitive Index 2024 jumping 3 positions from the 43rd rank in 2021. India was also named as the 48th most innovative country among the top 50 countries, securing 40th position out of 132 economies in the Global Innovation Index 2023. India rose from 81st position in 2015 to 40th position in 2023. These factors have boosted FDI investments in India. Some of the recent developments are as follows:

• According to data from DPIIT, foreign direct equity investment experienced a significant increase of 45%, reaching Rs. 2,58,873 crore (US$ 29.8 billion) in H1 FY25. This rise in FDI equity inflows follows three consecutive years of contraction in investment inflows.
• In FY24, hospitals in India garnered a substantial Rs. 12,708 crore (US$ 1.50 billion) in FDI, representing half of all healthcare FDI. This uptick from 24% in FY21 and 43% in FY20 highlights the increasing significance of hospitals in attracting foreign investments.
• India's Executive Director at the IMF, Mr. K V Subramanian, expressed strong confidence in India's path to becoming a US$ 55 trillion economy by 2047, as outlined in his new book *India@100: Envisioning Tomorrow's Economic Powerhouse*.
• Maharashtra government has set an ambitious target to double the state’s GDP to US$ 1 trillion (Rs. 84,73,000 crore) by the end of this decade. This would position Maharashtra’s GDP higher than that of countries such as Singapore, Switzerland, and the UAE. To reach this goal, the government aims for a Compound Annual Growth Rate (CAGR) of 14%, boosting the GDP from US$ 500 billion (Rs. 42,36,500 crore) to US$ 1 trillion (Rs. 84,73,000 crore).
• According to RBI’s November 2024 bulletin, gross inward Foreign Direct Investment (FDI) witnessed robust growth on a YoY basis as it increased to US$ 42.1 billion during April-September 2024 from US$ 33.5 billion a year ago.
• Net FDI in India has shown significant growth, more than doubling from US$ 3.26 billion in April 2024 to US$ 6.62 in August 2024. According to the Reserve Bank of India's October bulletin, gross inward FDI rose to US$ 36.1 billion, up from US$ 27.4 billion during the same period last year.
• Taiwanese companies are progressively shifting their supply chains from China to India amidst rising global trade tensions, strengthening economic connections between Taipei and New Delhi. Chairman of the Taiwan External Trade Development Council, Mr. James Huang, emphasized a notable increase in Taiwan's for FDI in India, surpassing US$ 665 million in the 5 years leading up to 2023, in contrast to the approximately US$ 277 million invested between 2006 and 2017.
• In June 2024, India saw a rise in outward Foreign Direct Investment (FDI) commitments to US$ 2.14 billion compared to US$ 1.14 billion in June 2023. However, these commitments decreased from US$ 2.22 billion in May 2024 according to data from the Reserve Bank of India (RBI). Over the period of April-June 2024, the total outward FDI amounted to US$ 3.16 billion, comprising US$ 1.94 billion in equity and US$ 1.21 billion in debt investments, with no guarantees reported.
• As of April 17, 2024, the Ministry of Finance's notification on Foreign Direct Investment (FDI) in the Space sector signifies a pivotal advancement, offering Indian space startups expanded avenues to global capital. This development underscores a commitment to fostering growth, innovation, and alignment with international benchmarks within the space industry.
• India aims to attract at least US$ 100 billion annually in gross Foreign Direct Investment (FDI), reflecting a significant increase from the previous average of over US$ 70 billion in the last five years through March 2023; despite a dip in FDI last year due to global uncertainties, the country anticipates achieving the US$ 100 billion target for the current fiscal year, with a positive and upward trend projected over the next five years, suggesting the need for continued reforms and policies to enhance investment attractiveness and stimulate growth across sectors.
• Over the past 9 years, the Indian insurance sector has attracted approximately Rs. 54,000 crore (US$ 6.48 billion) in Foreign Direct Investment (FDI), with significant increases in FDI limits and a rise in the number of insurance players, contributing to enhanced insurance penetration and density in the country.
• As of March 05, 2024, the Ministry of Commerce & Industry in India has reviewed the Foreign Direct Investment (FDI) Policy regarding the space sector, implementing changes in sectoral caps and entry routes for various activities within the sector, effective from the date of FEMA notification, and subject to sectoral guidelines issued by the Department of Space.
• The amendment in the Foreign Direct Investment (FDI) policy for the space sector, approved by the Union Cabinet under Prime Minister Mr. Narendra Modi, it divides the satellites sub-sector into three activities with specified foreign investment limits. It also permits 100% FDI to attract investors to Indian space companies through enhanced entry routes.
• As of February 9, 2024, companies in the defence sector have disclosed FDI valued at US$ 612 million (Rs. 5,077 crore). The government further encourages FDI by fostering collaboration on specialized defence technologies with foreign OEMs.
• The IT minister of India Mr. Ashwini Vaishnaw announced on 17th January 2024, that the country aims to achieve US$ 100 billion in annual Foreign Direct Investment (FDI) in the coming years, they anticipate a consistent growth rate of 6-8% over the next decade, underpinned by a meticulously devised strategy consisting of four major components.
• Financial Services Secretary Mr. Vivek Joshi stated in March 2024, that the insurance sector has attracted approximately US$ 6.51 billion (Rs. 54,000 crore) in Foreign Direct Investment (FDI) over the past nine years due to the government's continued liberalization of overseas capital flow regulations. He mentioned government raised the allowable FDI cap from 26% in 2014 to 49% in 2015, and subsequently to 74% in 2021.
• The Ministry of Food Processing Industries Organised World Food India-2023 in New Delhi in November 2023. The event saw investment interests and MoUs totalling US$ 4 billion (Rs. 33,129 crore). To bolster the food processing sector, the Ministry promotes investment through schemes like PMKSY, PLISFPI, and PMFME, which has resulted in an estimated investment leverage of over US$ 3.12 billion (Rs. 25,869 crore).
• NTPC Green Energy Limited (NGEL) signed a Memorandum of Understanding (MoU) with the Government of Maharashtra to collaborate on the development of Green Hydrogen and its derivatives, along with Pumped Storage Projects and renewable energy projects. This partnership, aligned with the state's Green Investment Plan for the next five years, anticipates an investment of around US$ 9.65 billion (Rs. 80,000 crores).
• The renewable energy sector received a total FDI equity investment of US$ 6.14 billion from April 2020 till September 2023, per the data from the Department for Promotion of Industry and Internal Trade (DPIIT). According to the existing FDI policy, up to 100% investment is permitted in the sector via the automatic route.
• Union Minister Dr. Jitendra Singh announced that India has attracted over US$ 120 million (Rs. 1,000 crore) in investments in space startups within the first nine months of FY24, owing to the opening up of the space sector for private players by Prime Minister Mr. Narendra Modi. The sector has also witnessed a surge from one startup to nearly 190 in four years.
• Karnataka has sealed eight MoUs valued at US$ 2.76 billion (Rs. 23,000 crore) with global giants, showcasing a robust economic stride. Key agreements include Web Werks' US$ 2.4 billion (Rs. 20,000) crore investment in a hyper-scale data centre and Microsoft's commitment to digital skilling initiatives. Hitachi aims to stimulate economic growth in rural areas. Additionally, MoUs worth US$ 360.97 million (Rs. 3000 crore) span digital healthcare, smart city infrastructure, renewable energy, and data centres. Companies, including Lulu Group and BL Agro, are set to establish facilities in north Karnataka, promoting equitable development. AI, sustainability, and citizen services emerged as focal points, signalling Karnataka's prowess in attracting diverse industries.
• In January 2024, DP World has sealed agreements worth US$ 3.0 billion (Rs. 25,000 crore) with the Gujarat government during the Vibrant Gujarat Global Summit 2024. DP World Group Chairman and CEO, H.E. Sultan Ahmed bin Sulayem, inked these MoUs with Additional Chief Secretary of Ports and Transport Department Mr. M K Das, in the presence of Prime Minister Mr. Narendra Modi and President of the United Arab Emirates Mr. Sheikh Mohamed bin Zayed Al Nahyan. The deals focus on developing deep-draft ports, economic zones, and Special Economic Zones in south Gujarat and along the western coast. DP World's commitment includes investments in Gati Shakti Cargo Terminals and Private Freight Stations at various locations in Gujarat.
• In January 2024, Prime Minister Mr. Narendra Modi inaugurated Boeing's cutting-edge US$ 192.51 million (Rs. 1,600 crore) Engineering and Technology Centre near Bengaluru. Spanning 43 acres, it marks Boeing's largest investment outside the US. Located in Devanahalli, the campus is set to foster collaborations with startups, private entities, and the government, driving next-gen aerospace and defence solutions globally. The new campus aligns with Boeing's global engineering expansion, featuring future avionics manufacturing and assembly capabilities.
• Hyundai Motors has successfully acquired General Motors India's Talegaon plant in Maharashtra and announced a substantial investment of US$ 721.94 million (Rs. 6000 crore) in the state. The agreement, finalized at the World Economic Forum in Davos, signifies Hyundai Motors' commitment to expanding its manufacturing capacity in India. The Talegaon plant, with an annual capacity of 130,000 units, is set to resume operations in 2025. Hyundai Motors plans phased investments to upgrade infrastructure and equipment, aligning with global standards, aiming to achieve a one-million-unit annual production capacity, and further solidifying its position in the Indian market.
• In 2024, Mercedes-Benz plans a US$ 24.03 million (Rs. 200 crore) investment in India, unveiling over 12 vehicles, including three electric models. Nearly half will be in the top-end vehicle segment, with prices starting at US$ 1,80,201 (Rs. 1.5 crore). The move reflects the luxury carmaker's commitment to expanding its presence and embracing the growing electric vehicle market in India.
• In October 2023, Reliance Retail Ventures Limited (RRVL) announced that a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA) will invest Rs. 4,966.80 crore (US$ 596.63 million) into the company.
• In September 2023, Hindalco signed a technology partnership with Italy-based, Metra SpA, to bring the latest aluminium extrusion technology to India for building rail coaches.
• In September 2023, US chipmaker, Nvidia Corporation announced separate partnerships with Reliance and Tata group companies to help them develop AI-powered supercomputers, AI clouds and generative AI applications.
• In September 2023, Singapore's investment firm, Temasek led US$ 140 million Ola Electric funding at a US$ 5.4 billion valuation.
• In August 2023, Qatar Investment Authority (QIA) invested Rs. 8,278 crore (US$ 994.39 million) in Reliance Retail Ventures Limited (RRVL) to get an equity stake of 0.99%.
• In August 2023, the global investment firm Temasek invested Rs. 1,200 crore (US$ 144,15 million) in its electric vehicle subsidiary Mahindra Electric Automobile Ltd (MAEL).
• In August 2023, Brookfield Asset Management entered into an agreement with Reliance Industries (RIL) to invest US$ 20-30 billion over the next decade in Australia's renewable energy sector.
• In August 2023, Walmart paid US$ 1.4 billion to buy out hedge fund Tiger Global's stake in Flipkart.
• In July 2023, Jio Financial partnered with BlackRock to launch an asset management firm with a combined investment of US$ 300 million.
• In July 2023, U.S.-based investment firm, Bain Capital announced that it has entered into an agreement to acquire 90% of Adani Capital and Adani Housing.
• In July 2023, Walt Disney is considering options for its Star India business, including a joint venture or sale, as it looks to help the India business grow and reduce costs.
• In July 2023, French advertising and public relations company Havas’s India arm announced the acquisition of Pivot Roots.
• In June 2023, All cargo Logistics completed the acquisition of a 30% stake in Gati-Kintetsu Express (GKEPL) for Rs. 406.71 crore (US$ 49.48 million).
• In June 2023, BPEA EQT group (formerly Baring Private Equity Asia), in partnership with ChrysCapital, is set to acquire around 90% stake in Housing Development Finance Corporation's wholly owned education financial subsidiary HDFC Credila Financial Services Ltd (HDFC Cedilla) for Rs. 9,060.5 crore (US$ 1.10 billion).
• In June 2023, Private Equity (PE) investors Blackstone Inc., BPEA EQT (formerly Baring Private Equity Asia), CVC Capital Partners, and General Atlantic Service Company are competing to acquire Mumbai-based Indira IVF Hospital Pvt. Ltd.
• In April 2023, Sheares Healthcare, a subsidiary of Singapore-based Temasek, agreed to purchase a majority position in Manipal Health Enterprises, increasing its holding from 18% to nearly 59% for around Rs. 16,400 crore (US$ 2 billion).
• In February 2023, Singapore Airlines acquired a 25.1% share in the Air India group after investing US$ 267 million.
• VilCart, the rural economy-focused technology startup bagged US$ 18 million in January 2023 from Asia Impact SA, Nabventures Fund and Texterity Pvt Ltd to expand their operations.