India's FDI Policies Under Continuous Review to Boost Investment Attractiveness

India's government has been consistently reviewing and updating its Foreign Direct Investment (FDI) policies to ensure the country remains an attractive and investor-friendly destination. The government seeks to simplify regulations, enhance the Ease of Doing Business, and liberalize FDI norms across multiple sectors. Significant reforms include increased FDI caps in Defence, Insurance, and Telecom, streamlined processes, and the introduction of various initiatives to support startups and manufacturing sectors. These efforts resulted in record FDI inflows, with USD 80.62 billion reported for FY 2024-25. The government also strategically uses Free Trade Agreements to promote export diversification and attract further investment.

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