India’s Liberalised FDI Regime Sparks Global Investor Interest, Says Deloitte

India’s liberalised foreign direct investment (FDI) policy is attracting global attention for offering stability, predictability, and sector-neutral opportunities to investors, according to Deloitte India. The firm highlighted that the country’s progressive reforms, coupled with a booming economy, are positioning India as a top destination for international capital.

In a statement on Sunday, Deloitte India economist Rumki Majumdar noted that India’s 100 per cent FDI allowance under the automatic route in key sectors — including insurance, tourism construction, medical devices, and hospitals — marks a decisive step toward creating a transparent and welcoming investment climate.

“This move signals not just openness but stability, offering global investors predictable, sector-agnostic opportunities to enter India's vast and growing economy,” said Majumdar.

She pointed to India’s infrastructure push, backed by the USD 70-billion National Monetisation Pipeline and the ongoing development of industrial corridors across more than 100 cities, as a key factor bolstering investor confidence. These initiatives are creating “plug-and-play” investment-ready zones, she added.

Among the major FDI magnets, Deloitte highlighted pharmaceuticals, automobiles, and tourism as not only top investment destinations but also crucial engines of employment, innovation, and exports — collectively driving India’s next wave of economic growth.

Majumdar also emphasised the booming tourism and hospitality sector, which contributes over USD 199.6 billion to India’s GDP. With 100 per cent FDI now allowed in hotel and recreation facility construction, the sector is poised for rapid expansion and continues to project India as a stable and transparent investment hub.

Notably, India recorded a 27 per cent jump in FDI inflows during April–December 2024-25, reaching USD 40.67 billion — up from USD 32 billion in the same period last year.

Additionally, Majumdar highlighted India’s evolving role in global trade through comprehensive trade agreements with multiple nations. “These agreements are removing tariff and non-tariff barriers, bolstering the Make in India thrust, and supporting India's long-term pivot from preferential trade access to becoming a pivotal player in global commerce,” she noted.

With rising FDI, infrastructure synergy, and a growing global trade footprint, India appears firmly on track to cement its place as a leading global investment destination.

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