India Now Allows 100% FDI in Most Industries Through the Automatic Route, Says Union Commerce Minister

New Delhi, June 6, 2025 – On June 5, 2025, the Ministry of Commerce & Industry showcased India’s impressive FDI journey at an exclusive investor roundtable in New Delhi. With over 90 key representatives from top companies and industrial associations in attendance, the event highlighted India’s evolving investment landscape, focusing on reinvestment and infrastructure development.

Transformational FDI Growth Backed by Reforms

In a video message – Union Minister of Commerce and Industry Shri Piyush Goyal called India’s FDI environment “truly transformational”. Pressing that it was because of a regulatory regime that was friendly to investors and progressive. He said that India now allows up to 100% FDI through the automatic route in most industries. This has led to investments from 112 nations, up from 89 in FY14.

“India’s FDI success reflects not just impressive numbers but the world’s growing trust in India’s economic future, powered by structural reforms and policy clarity,” said Shri Goyal reaffirming the government’s ambition to make India the most preferred investment destination globally.

DPIIT Emphasizes Ecosystem Development and Reinvestment

Shri Amardeep Singh Bhatia, Secretary of the Department for Promotion of Industry and Internal Trade (DPIIT) – led the roundtable. Bhatia in his keynote speech mentioned that FDI is a significant part of India’s economic progress and a proof that investors around the world have faith in the country. He asked for comments from stakeholders on how to improve reinvestment in India, strengthen the infrastructure of industrial parks, and look into new ways to grow.

Bhatia also pushed for targeted policy changes to bring in the next wave of foreign investment and advised investors to put money into startups and help grow their businesses at home.

Industry Voices Push for Policy Support and Expansion

Participants appreciated the liberalized FDI norms and the government’s proactive stance in improving the investment climate. Key suggestions revolved around:

• Streamlining land and labour regulations
• Enhancing skill development initiatives
• Strengthening Centre-State coordination
• Increasing FDI limits in Research & Development
• Promoting green energy and manufacturing investments

Representatives from over 50 industrial parks across Rajasthan, Maharashtra, Gujarat, Karnataka, Uttar Pradesh, Delhi, and Tamil Nadu attended, signaling robust pan-India industrial interest.

India’s FDI roundtable reaffirms its commitment to maintaining momentum through reinvestment incentives, improved infrastructure, and a predictable regulatory environment—strengthening its position as a global investment hub.

REF: https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=2134493

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