India's FDI Inflows Hit $51 Billion Amid Manufacturing, Startup Push | Quick Digest

India's FDI Inflows Hit $51 Billion Amid Manufacturing, Startup Push | Quick Digest
India has recorded approximately $51 billion in total Foreign Direct Investment (FDI) during the first half of fiscal year 2025-26 (April-September 2025). This surge is attributed to the government's strong emphasis on boosting domestic manufacturing and fostering greater collaboration between corporates and startups.

India attracted $51 billion in total FDI during H1 FY26 (April-September 2025).

Government links FDI growth to manufacturing push and startup ecosystem development.

DPIIT Secretary highlighted efforts to integrate startups into manufacturing supply chains.

National Startup Day on Jan 16 to launch 75 Grand Challenges for innovation.

Focus on deep-tech startups and aligning FDI with domestic R&D ecosystem.

Increased corporate engagement with startups to drive innovation and reduce costs.

India has witnessed a significant surge in Foreign Direct Investment (FDI), reaching approximately $51 billion in total inflows during the first half of the current fiscal year (H1 FY26), spanning April to September 2025. This robust inflow reflects sustained global investor confidence in India's growth trajectory. The Department for Promotion of Industry and Internal Trade (DPIIT) Secretary, Amardeep Singh Bhatia, confirmed this figure, emphasizing the government's strategic initiatives as key drivers. The government is actively linking this rise in FDI to its concerted efforts to bolster domestic manufacturing and integrate the burgeoning startup ecosystem. Bhatia underscored the strong focus on boosting manufacturing, with substantial investments flowing into the sector and a push for innovation-driven production. A core aspect of this strategy involves encouraging corporates to deepen their engagement with startups, promoting collaborations to drive innovation and enhance efficiency. This includes leveraging startups to build new products, integrate them into supply chains, and potentially outsource problems, thereby helping companies reduce manufacturing costs. Furthermore, the government is aligning foreign direct investment with the domestic manufacturing and research ecosystem to ensure capital contributes to long-term value creation, moving beyond just consumption-driven sectors. A particular emphasis is being placed on deep-tech startups capable of converting advanced research into commercial products. As part of its broader startup promotion, DPIIT is set to organize National Startup Day on January 16, featuring the launch of 75 Grand Challenges to foster innovation across various sectors, alongside presenting 20 National Startup Awards. This highlights a comprehensive government approach to synergize FDI with indigenous innovation and manufacturing capabilities.
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