India sees record $80.62B in FDI as tech giants commit big

India sees record $80.62B in FDI as tech giants commit big India is poised for robust foreign direct investment growth in 2026, building on a record USD 80.62 billion in FDI inflows during 2024-25. The optimism stems from major investment commitments by global technology giants, newly implemented trade agreements, and sustained government reforms aimed at improving ease of doing business. DPIIT Secretary Amardeep Singh Bhatia expressed confidence that FDI in 2026 could surpass last year's historic high. This comes even as global FDI flows fell 11 percent in 2024 to USD 1.5 trillion, according to UNCTAD's World Investment Report 2025, with developed countries experiencing a 22 percent contraction. Tech Giants Bet Big on India Three of the world's largest technology companies announced investments totaling over USD 67 billion in India during December. Microsoft CEO Satya Nadella pledged USD 17.5 billion by 2030 to build AI and cloud infrastructure, marking the company's largest investment in Asia. Amazon followed with a USD 35 billion commitment through 2030 to expand its operations from quick commerce to cloud computing. Earlier in October, Google announced a USD 15 billion investment over five years to establish an AI hub. Two landmark trade agreements are expected to channel significant long-term capital into India. The India-EFTA Trade and Economic Partnership Agreement, which entered into force on October 1, 2025, includes a binding commitment of USD 100 billion in FDI over 15 years. On the agreement's implementation day, Swiss healthcare major Roche Pharma announced plans to invest 1.5 billion Swiss francs (approximately USD 1.9 billion) over five years. In December, India concluded negotiations on a free trade agreement with New Zealand, which commits USD 20 billion in investment over 15 years. The pact is expected to be signed in the first half of 2026. Strong Fundamentals Drive Confidence India's economic performance has bolstered investor confidence. The economy grew 8.2 percent in the second quarter of 2025-26, the highest in six quarters. The services sector attracted 19 percent of total FDI inflows in 2024-25, followed by computer software and hardware at 16 percent. The government has introduced the Jan Viswas 2.0 bill to further decriminalize minor industry-related offenses and streamline compliance. The Union Budget 2025 also raised the FDI cap in insurance from 74 percent to 100 percent under the automatic route. "As India diversifies its economic relationships amid geopolitical uncertainties and moves up the value chain in manufacturing and services, these developments are expected to channel greater long-term FDI into services, software and electronics," said Rumki Majumdar, Economist at Deloitte India.

India sees record $80.62B in FDI as tech giants commit big

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India sees record $80.62B in FDI as tech giants commit big

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