FDI in India: Sectors, Limits, and the Complete Investment Process [2026]

Foreign Direct Investment (FDI) in India has entered one of its most consequential phases. With gross FDI inflows reaching US$81.04 billion in FY 2024-25, a 14% jump from the previous year, and the first half of FY 2025-26 already registering US$50.36 billion (a 16% year-on-year increase), the data tells a story of sustained investor confidence that goes well beyond headline numbers. India is no longer just a “high-potential” destination on an investment roadmap. It is an active, reforming, policy-driven economy that is systematically removing barriers, raising sectoral caps, and streamlining approvals to compete for the world’s most mobile capital.

This guide is designed for foreign investors, legal professionals, startup founders, and policymakers who need an understanding of how FDI works in India in 2026: which sectors are open, at what limits, through which routes, and what the step-by-step process looks like from the moment an investment decision is made to the moment capital is deployed.

Key Takeaways

• India’s cumulative FDI since April 2000 has crossed US$1.14 trillion, covering 170+ countries, 33 states, and 63 sectors.
• More than 90% of all FDI inflows come through the Automatic Route, requiring zero prior government approval.
• Insurance FDI has been raised to 100% (from 74%), defense allows up to 74% under the Automatic Route (with 100% available with government approval).
• The SEBI SWAGAT-FI digital onboarding framework becomes effective June 1, 2026, further simplifying entry for institutional investors.
• Sectors where FDI remains prohibited include gambling, lottery businesses, tobacco manufacturing, and atomic energy.

Why India’s FDI Story seeks attention

The Macro Backdrop: Supply Chain Realignment and Investor Search for Alternatives

The global investment landscape has been reshaped by US-China trade tensions, post-pandemic supply chain vulnerabilities, and accelerating geopolitical fragmentation. India sits at the intersection of every major tailwind: a large and growing domestic market, a young workforce, a maturing digital infrastructure, and a government that is actively using FDI liberalization as a tool of economic statecraft.

According to UNCTAD’s World Investment Report (2025), Asia as a whole attracted US$605 billion in FDI, representing 40% of global flows and 70% of total investment in developing economies. Within South Asia, India was the dominant destination, maintaining its lead position for greenfield investment even as overall flows moderated by 2% globally. This performance is particularly significant because it came in a year marked by global interest rate volatility and persistent geopolitical risk.

The Economic Survey 2025-26 reported FDI inflows growing by 17.9% year-on-year to reach US$55.6 billion, attributing the performance to India’s robust GDP growth, stable macroeconomic fundamentals, and progressive ease-of-doing-business reforms. The survey also introduced an important nuance: the focus is increasingly shifting from attracting FDI volumes to attracting quality FDI that transfers technology, builds capabilities, and integrates Indian enterprises into global value chains (GVCs).

From 2013 to 2026: The Scale of Transformation

The transformation of India’s FDI regime over the past decade is striking. In FY 2013-14, total FDI inflows stood at US$36.05 billion. By FY 2024-25, that figure had more than doubled to US$81.04 billion. This growth was not accidental. It was the direct result of a series of deliberate, sequenced policy liberalizations:

• 2014-2019: Increased FDI caps in defense, insurance, and pension sectors; liberalized policies in construction, civil aviation, and single-brand retail.
• 2019-2024: 100% FDI under the Automatic Route opened for coal mining, contract manufacturing, and insurance intermediaries.
• 2025-2026: Insurance cap raised to 100%; defense Automatic Route limit raised from 49% to 74%; SWAGAT-FI digital gateway announced; angel tax abolished; new PLI incentives activated.

The government’s overarching framework follows a negative list approach: barring a select few prohibited sectors, FDI is permitted up to 100% under the Automatic Route across the economy.

India’s FDI Policy Architecture: The Legal and Regulatory Framework

The Governing Laws

FDI in India is regulated by a layered framework of laws, regulations, and policy instruments:

• Foreign Exchange Management Act, 1999 (FEMA): The primary legislation governing all foreign exchange transactions, including FDI. The Reserve Bank of India (RBI) administers FEMA and issues specific regulations for different categories of investment.
• Consolidated FDI Policy (DPIIT): Issued by the Department for Promotion of Industry and Internal Trade (DPIIT), this policy document is updated periodically and serves as the master reference for sectoral caps, entry routes, and conditions. The most recent comprehensive version is the Circular dated October 15, 2020, amended through subsequent press notes and budget announcements.
• Companies Act, 2013: Governs corporate structure, share issuance, and governance requirements for Indian entities receiving FDI.
• SEBI Regulations: Applicable to publicly listed companies and portfolio-linked foreign investments.

The Two Routes: Automatic and Government

Every FDI transaction into India flows through one of two entry routes. The applicable route depends on the sector and the proposed extent of foreign ownership.

Automatic Route: The investor does not require any prior approval from the Government of India or the RBI. The investor and the Indian company simply ensure compliance with sectoral caps, pricing guidelines, and documentation requirements. Post-investment reporting to the RBI is required within 30 days of receipt of funds. More than 90% of FDI inflows into India come through this route.

Government Route (Approval Route): Prior approval is required from the relevant Administrative Ministry or Department. Applications are filed through the Foreign Investment Facilitation Portal (FIFP), routed through DPIIT, and evaluated by the concerned ministry in consultation with the RBI, Ministry of Home Affairs (for security clearances), and Ministry of External Affairs. The process typically takes up to 90 days.

The Foreign Investment Promotion Board (FIPB), which historically processed Government Route approvals, was abolished in May 2017. Since then, the relevant Administrative Ministries and Departments process applications directly, with DPIIT playing a coordinating role.

Sector-by-Sector FDI Limits in India

Understanding where and how much a foreign investor can own is the first and most critical step. The table below summarizes the current FDI limits across major sectors as of April 2026.

Sector	FDI Cap	Route
Agriculture and Horticulture	100%	Automatic
Plantation (Tea, Coffee, Rubber)	100%	Automatic
Manufacturing (General)	100%	Automatic
Defense Manufacturing	74%	Automatic
Defense Manufacturing (Modern Tech)	100%	Government
Telecom	100%	Automatic
E-Commerce (B2B)	100%	Automatic
E-Commerce (B2C Inventory-based)	0%	Prohibited
Railway Infrastructure	100%	Automatic
Roads and Highways	100%	Automatic
Construction Development	100%	Automatic
Industrial Parks	100%	Automatic
Airport Infrastructure	100%	Automatic
Insurance (Post-2025 reform)	100%	Government
Insurance Intermediaries	100%	Automatic
NBFCs	100%	Automatic
Asset Reconstruction Companies	100%	Automatic
Private Sector Banking	74%	Automatic
Public Sector Banking	20%	Government
Pharmaceuticals (Greenfield)	100%	Automatic
Pharmaceuticals (Brownfield)	74%	Automatic
Pharmaceuticals (Brownfield, above 74%)	100%	Government
Single Brand Retail Trading	100%	Automatic
Multi-Brand Retail Trading	51%	Government
Civil Aviation (Scheduled Airlines)	100%	Automatic
Civil Aviation (Air Transport Services)	74%	Automatic
Print Media	26%	Government
Digital Media	26%	Government
Broadcasting (FM Radio)	49%	Government
Space (Satellites)	74%	Government
Space (Launch Vehicles)	49%	Government
Petroleum and Natural Gas	100%	Automatic
Renewable Energy	100%	Automatic
Gambling, Lottery, Betting	0%	Prohibited
Atomic Energy	0%	Prohibited
Tobacco (Cigarettes)	0%	Prohibited

Sectors Attracting the Highest FDI Equity Inflows in FY 2024-25

The sectoral distribution of FDI tells an important story about where global capital is finding the highest conviction in India:

• Services Sector: US$9.35 billion (19% of total equity inflows), a 40.77% increase year-on-year.
• Computer Software and Hardware: 16% share of total equity inflows.
• Trading: 8% share.
• Manufacturing (Aggregate): US$19.04 billion, an 18% increase from FY 2023-24.
• Telecommunications: 5% of cumulative equity inflows since 2000.

From April 2000 to December 2025, India’s service sector attracted the highest cumulative FDI equity inflow: approximately US$127.26 billion, representing 16% of total cumulative inflows. Computer software and hardware was nearly equal at US$121.40 billion.

Key Sectors in Detail

Financial Services: Insurance, Banking, and NBFCs

The financial services space has seen the most dramatic liberalization in the 2025-2026 cycle. The Union Budget 2025 proposed raising the insurance sector FDI cap from 74% to 100%, with the condition that companies investing under the expanded limit reinvest their entire premium income within India. A bill to enable this legislative change was introduced in Parliament in December 2025, and according to the Economic Survey 2025-26, insurance was formally opened to 100% FDI during this period.

For banking, the rules remain differentiated: private banks allow 74% FDI under the Automatic Route, while public sector banks are capped at 20% under the Government Route. NBFCs, asset reconstruction companies (ARCs), and insurance intermediaries allow 100% FDI under the Automatic Route, making them attractive entry points into India’s broader financial ecosystem.

Defense: Strategic but Increasingly Open

Defense manufacturing has historically been among India’s most guarded sectors. The current framework allows 74% FDI under the Automatic Route for companies seeking new industrial licenses (up from 49%), with the ability to go up to 100% under the Government Route where access to modern technology is demonstrated. This is a deliberate policy signal: India wants to attract foreign OEMs and defense technology companies, particularly those willing to transfer technology and manufacture domestically under the “Make in India” framework.

Pharmaceuticals: Greenfield vs. Brownfield Distinction

The pharmaceutical sector applies a critical distinction between new investments and acquisitions. Greenfield investments (new manufacturing facilities) allow 100% FDI under the Automatic Route without restriction. Brownfield investments (acquisition of or merger with existing pharmaceutical companies) allow 74% under the Automatic Route, with amounts exceeding 74% requiring Government approval. This asymmetry reflects the government’s desire to encourage new manufacturing capacity while maintaining oversight over the transfer of existing healthcare assets.

Telecom: Fully Open Post-2021 Reforms

The telecom sector allows 100% FDI under the Automatic Route following reforms that removed the earlier requirement for government approval beyond 49%. The US, Singapore, and Cyprus are among the largest sources of telecom FDI. The Bharti Airtel-Google partnership announced in October 2025, involving approximately Rs. 1,25,000 crore (US$15 billion) in planned investment over 2026-2030 for AI infrastructure, data centers, and subsea cable connectivity, is indicative of the scale of capital that a fully open telecom-adjacent sector can attract.

Retail: Single Brand vs. Multi-Brand

The treatment of retail FDI remains one of the most politically nuanced areas of India’s investment policy. Single Brand Retail Trading allows 100% FDI under the Automatic Route, but comes with local sourcing conditions (at least 30% of goods must be sourced from India for investments beyond 51%). Multi-Brand Retail Trading (supermarkets, hypermarkets) is capped at 51% under the Government Route, and even then requires compliance with state-level approvals since retail is a concurrent subject.

E-commerce follows a marketplace model only for 100% FDI: foreign investors can operate platforms that connect buyers and sellers, but cannot hold inventory or directly sell goods (inventory-based B2C e-commerce is prohibited). This policy effectively shapes the operating model of every major e-commerce platform operating in India.

Space: An Emerging Frontier

India opened the space sector to private and foreign investment in a structured way through the Indian Space Policy 2023. Under the current FDI framework, satellites allow up to 74% FDI under the Government Route, while launch vehicle manufacturing is capped at 49%. This sector is expected to receive growing investor attention through 2026 as India’s commercial space ecosystem matures.

Source Countries: Where Does India’s FDI Come From?

Understanding the origin of FDI flows helps investors benchmark their own country’s treaty benefits and routing strategies.

• Singapore: Consistently the largest source of FDI inflows into India, partly reflecting the routing of global capital through Singapore-domiciled holding structures. India-Singapore bilateral trade and investment ties are among the deepest in the Asia-Pacific.
• United States: The second-largest source, concentrated in technology, services, and financial sectors.
• Cyprus and Mauritius: Historically significant due to favorable double taxation avoidance agreements (DTAAs). Mauritius’s role has diminished since the renegotiation of the India-Mauritius tax treaty, which removed capital gains exemptions for investments routed through the island nation.
• Netherlands, Japan, UAE: All significant contributors, particularly in infrastructure, manufacturing, and energy.

According to RBI data, the US, Cyprus, and Singapore together contributed more than three-fourths of total FDI inflows in June 2025.

The FDI Investment Process: A Step-by-Step Guide

Knowing the sectoral limits is only part of the picture. The mechanics of executing an FDI transaction in India involves a specific sequence of legal, regulatory, and compliance steps. The process differs between the Automatic Route and the Government Route.

Process Under the Automatic Route

Step 1: Pre-Investment Due Diligence

Before committing capital, the foreign investor must confirm that the target sector is eligible for the Automatic Route and identify the applicable FDI cap. This involves reviewing the current DPIIT Consolidated FDI Policy, any recent press notes, and sector-specific regulations (e.g., SEBI regulations for listed companies, RBI regulations for banking entities, IRDAI for insurance). Legal and tax due diligence should also cover the Indian investee company’s corporate structure, shareholding pattern, and existing foreign investment approvals.

Step 2: Determine the Investment Instrument

FDI can be made through equity shares, fully and mandatorily convertible debentures (FCDs), or fully and mandatorily convertible preference shares. Non-convertible or optionally convertible instruments are treated as debt (external commercial borrowings or ECBs) and governed by separate regulations. The pricing of equity shares must comply with FEMA pricing guidelines: the price cannot be less than the fair value determined by a SEBI-registered merchant banker or a chartered accountant using internationally accepted valuation methodologies.

Step 3: Receive the Investment

The foreign investor remits the investment amount to the Indian company’s designated bank account. The remittance must come through normal banking channels (wire transfer) or from the investor’s Non-Resident External (NRE) account in India.

Step 4: Report to the RBI (FC-GPR Filing)

Within 30 days of receiving the investment, the Indian company must report the inflow to the Regional Office of the RBI (under whose jurisdiction the Registered Office is located) using the Form FC-GPR (Foreign Currency-Gross Provisional Return). This is now done through the RBI’s FIRMS (Foreign Investment Reporting and Management System) portal. The FC-GPR must include details of the amount received, the number of shares proposed to be issued, and the valuation certificate.

Step 5: Issue Shares and File FC-GPR (Final)

Within 60 days of receiving the investment, the Indian company must issue the shares (or convertible instruments) to the non-resident investor and file the final FC-GPR with the RBI confirming allotment.

Step 6: Update the Shareholding Pattern

Following the share allotment, the company must update its shareholder register, notify the Registrar of Companies (RoC) through Form PAS-3 (Return of Allotment), and maintain a clear record of foreign versus domestic ownership for ongoing compliance.

Step 7: Ongoing Compliance

On an annual basis, Indian companies with FDI must file the Annual Return on Foreign Liabilities and Assets (FLA Return) with the RBI by July 15 each year. Significant changes to the shareholding pattern involving non-residents may also require fresh FC-GPR filings or FC-TRS (Foreign Currency Transfer of Shares) filings as applicable.

Process Under the Government Route

For sectors requiring prior government approval, the process involves additional steps and a longer timeline. Investors should plan for approximately 90 days from application to approval, though complex proposals or those requiring security clearances can take longer.

Step 1: File the Application on the FIFP

The foreign investor or the Indian investee company files an online application on the Foreign Investment Facilitation Portal (FIFP), maintained by DPIIT. The application must include all mandatory information: details of the investor, the investee company, the proposed investment amount, the purpose, and all supporting documents (certificates of incorporation, memoranda of association, audited financials, board resolutions).

Step 2: DPIIT Routes the Application (Within 2 Days)

After receiving the online submission, DPIIT identifies the concerned Administrative Ministry or Department and electronically transfers the proposal to the competent authority within 2 working days. DPIIT simultaneously circulates the proposal to the RBI for comments from a FEMA compliance perspective.

Step 3: Security and External Affairs Clearance

Proposals involving certain sectors or investor nationalities are forwarded to the Ministry of Home Affairs (MHA) for security clearance and to the Ministry of External Affairs for information and comments. MHA must provide clearance within 6 weeks. If MHA cannot meet this timeline, it must communicate the expected timeframe to the concerned ministry.

Step 4: Ministry Review and Comments (Within 4 Weeks)

The concerned Administrative Ministry processes the application internally, seeks inputs from sector regulators (e.g., IRDAI for insurance, TRAI for telecom), and provides its recommendation. If comments are not received within the 4-week window, the ministry is deemed to have no objection.

Step 5: Decision and Communication

The concerned ministry or department takes the final decision on approval or rejection. For investments involving foreign equity of up to a threshold level, the decision may be made by the Minister of Finance (in their capacity as the authority overseeing FDI approvals). Proposals involving very large investments may be referred to the Cabinet Committee on Economic Affairs (CCEA). The applicant is notified of the decision through the FIFP portal.

Step 6: Receive Investment and File with RBI

Once the government approval is granted, the process largely mirrors the Automatic Route: the investor remits funds, the Indian company files the FC-GPR within 30 days, and shares are issued within 60 days.

Instruments and Structures: How FDI Capital Is Deployed

Beyond the route and the sector, investors must also select the appropriate legal structure and instrument for their FDI:

Equity Shares: The most common instrument. Must be priced at or above fair market value (for inbound investments). Offers voting rights and economic participation.

Compulsorily Convertible Debentures (CCDs) and Preference Shares (CCPS): Treated as equity for FDI purposes. Must be fully and mandatorily convertible; the conversion ratio must be fixed upfront. Popular in venture capital and private equity transactions.

Limited Liability Partnerships (LLPs): FDI in LLPs is permitted under the Automatic Route in sectors where 100% FDI is allowed. Conversion of a company with FDI into an LLP requires Government approval.

Joint Ventures: Foreign investors may form joint ventures with Indian partners. The shareholding structure must comply with applicable sectoral caps. JVs are common in defense, retail, and broadcasting.

Branch Offices and Liaison Offices: Governed separately by RBI regulations under FEMA. A Branch Office can conduct limited commercial activities. A Liaison Office can only conduct communication and coordination activities and cannot engage in any commercial, trading, or industrial activity.

The SWAGAT-FI Framework: India’s FDI Onboarding Revolution

One of the most significant structural developments for foreign institutional investors in 2026 is the activation of the SWAGAT-FI framework. Formally notified by SEBI on December 1, 2025, the SWAGAT-FI framework becomes effective from June 1, 2026, and functions as a unified digital gateway for eligible foreign investors.

The framework is designed to provide single-window onboarding and compliance for foreign portfolio and institutional investors, reducing onboarding friction, enhancing transaction certainty, and streamlining the regulatory touchpoints that foreign capital must navigate. For large institutional investors such as sovereign wealth funds, pension funds, and global asset managers, SWAGAT-FI is expected to materially reduce the time and cost of establishing an investment presence in India.

Prohibited Sectors: Where FDI Is Not Permitted

India’s FDI framework follows an explicit prohibition list. The following sectors are closed to FDI under both the Automatic Route and the Government Route:

• Lottery businesses: Including government and private lotteries, online lotteries.
• Gambling and betting: Including casinos of all kinds.
• Chit funds.
• Nidhi companies (a type of non-banking financial company operating under mutual benefit).
• Trading in Transferable Development Rights (TDRs).
• Real estate business or construction of farmhouses (distinct from real estate construction development projects, which are open).
• Manufacturing of cigars, cheroots, cigarillos, and cigarettes made from tobacco or tobacco substitutes.
• Atomic energy and related activities: Governed by the Atomic Energy Act, 1962.
• Railway operations: Except for specific permitted activities such as construction of railway infrastructure, high-speed rail, suburban corridors, and mass rapid transit systems.

Note that foreign technology collaboration (licensing, franchise, trademark, management contracts) is also prohibited in lottery and gambling businesses.

Current Trends and What to Watch in 2026

Green Energy as a New FDI Magnet

India has committed to achieving 500 GW of non-fossil fuel power capacity by 2030, and the renewable energy sector allows 100% FDI under the Automatic Route. The government has allocated over Rs. 11.21 lakh crore (3.11% of GDP) for infrastructure development in Budget 2025-26, and renewable energy infrastructure is a significant component. Solar, wind, and green hydrogen projects are attracting growing FDI from Japan, South Korea, UAE, and European institutional investors.

Manufacturing: PLI Schemes as FDI Amplifiers

The Production Linked Incentive (PLI) Scheme, covering 14 sectors with an aggregate outlay of Rs. 1.97 lakh crore (over US$26 billion), has become one of the most effective tools for attracting manufacturing FDI. Electronics and EV manufacturing have been allocated over Rs. 9,000 crore in PLI incentives for FY 2025-26 alone. The combination of 100% Automatic Route FDI, PLI subsidies, and lower corporate tax rates (15% for new manufacturing companies under Section 115BAB) creates a compelling case for production-linked investment.

Startup Ecosystem: Angel Tax Abolished

The abolition of angel tax for all classes of investors, effective from FY 2025-26, eliminates one of the most persistent pain points for early-stage foreign investment in Indian startups. The Union Budget 2025 also announced a new Fund of Funds worth Rs. 10,000 crore to expand startup support. These measures, combined with India’s deep pool of engineering talent and a rapidly growing consumer market, position India’s startup ecosystem as a priority destination for cross-border venture capital.

Bilateral Investment Treaties and Trade Agreements

India’s expanding FTA network, including agreements with the UAE, Australia, and ongoing negotiations with the EU and UK, is reshaping the terms on which foreign capital can access the Indian market. India’s 2025 Budget also announced a review of the 2015 Model Bilateral Investment Treaty (BIT) to make future treaties more investor-friendly while preserving domestic regulatory space. Investors from FTA partner countries benefit from preferential duty rates on inputs and, in some cases, streamlined investment access.

Digital and Data-Driven Sectors: Evolving Oversight

Investors in digital platforms, data centers, and AI infrastructure should monitor India’s evolving framework for data localization, digital taxation, and FDI screening in strategically sensitive digital sectors. The government has signaled a heightened interest in ensuring that investments in critical digital infrastructure are subject to appropriate national security review, particularly where technology transfer, data storage, or platform control is involved.

Common Challenges and How Investors Navigate Them

Despite the significant liberalization of recent years, FDI in India is not without its friction points. Experienced investors and advisors identify several recurring challenges:

Regulatory Layering: Even when FDI is permitted under the Automatic Route, sectoral regulators (IRDAI for insurance, SEBI for capital markets, TRAI for telecom, RBI for banking) impose their own licensing, ownership, and operational conditions. Compliance requires coordination across multiple regulatory bodies.

State-Level Approvals: For sectors like retail and real estate, FDI policy may be permissive at the central level while state-level regulations (rent control, zoning laws, municipal approvals) create implementation delays. Investors need to map both central and state-level requirements before committing.

Pricing and Valuation Disputes: The requirement that inbound FDI be priced at or above fair market value (and that outbound transfers be at or below fair market value for tax purposes) creates complex valuation negotiations, particularly in early-stage or unlisted company transactions.

Transfer of Shares: Transfer of shares from residents to non-residents or vice versa requires filing of Form FC-TRS with the authorized dealer bank within 60 days of transfer. Delays in filing attract penalties under FEMA.

Downstream Investment Rules: When a foreign-owned Indian entity invests in another Indian entity, the downstream investment is also governed by FDI rules. The level of indirect foreign investment is calculated on a proportionate basis and must remain within applicable sectoral caps.

Multi-Brand Retail Restrictions: Despite a 51% cap being technically permitted, the requirement for state government approval means that the effective policy on multi-brand retail FDI varies significantly by geography, creating implementation risk.

Conclusion: India’s FDI Opportunity in 2026

India’s FDI trajectory in 2026 is defined by a productive tension between openness and strategic direction. The government has made an unambiguous choice to compete aggressively for global capital, evidenced by cumulative inflows exceeding US$1.14 trillion since April 2000, by its willingness to raise sectoral caps in politically sensitive areas like insurance and defense, and by its investment in the institutional infrastructure that makes investing easier: the FIFP portal, the FIRMS reporting system, the SWAGAT-FI onboarding gateway.

At the same time, India retains a clear set of strategic priorities. Quality FDI that transfers technology, builds domestic manufacturing capability, creates skilled employment, and integrates Indian industry into global value chains is preferred over passive portfolio investment or round-tripping. The PLI schemes, the angel tax abolition, and the FTA strategy all reflect this orientation.

Key takeaways for investors considering India in 2026:

• More than 90% of sectors are open at 100% under the Automatic Route with no prior government approval needed.
• Insurance is now fully open to FDI following 2025-26 reforms, subject to domestic premium reinvestment conditions.
• The SWAGAT-FI framework, effective June 2026, will substantially reduce institutional investor onboarding time.
• The PLI scheme, combined with 100% FDI in manufacturing, makes India one of the most incentive-rich manufacturing FDI environments in Asia.
• Prohibited sectors are narrow and well-defined: gambling, lottery, tobacco manufacturing, atomic energy, and certain forms of real estate and retail.

For investors who understand the framework, plan their entry structure carefully, and engage with sector regulators proactively, India in 2026 offers a combination of scale, regulatory clarity, growth potential, and government support that is difficult to match anywhere in the world.