Introduction
India has steadily evolved into one of the fastest-growing major economies, offering a vibrant and welcoming environment for investors from around the world. In FY 2025–26, Real GDP (GDP at Constant Prices) is estimated to reach Rs. 201.90 lakh crore (US$ 2.24 trillion), rising from the provisional level of Rs. 187.97 lakh crore (US$ 2.26 trillion) in FY 2024–25, reflecting a robust growth of 7.4%. At current prices, Nominal GDP is projected to reach Rs. 357.14 lakh crore (US$ 3.96 trillion) in FY 2025–26, from Rs. 330.68 lakh crore (US$ 3.98 trillion) in the previous year, registering a growth of 8.0%.
India’s investor base has expanded rapidly, reflecting deeper financial inclusion and growing participation across regions. During FY26 (up to December 2025), 2.35 crore demat accounts were added, taking the total number of demat accounts beyond 21.6 crore, while the number of unique investors crossed 12 crores in September 2025, with women accounting for nearly one-fourth of this base. Mutual fund participation has also strengthened, with 5.9 crore unique investors as of December 2025, including 3.5 crore from non-Tier I and Tier II cities, highlighting a widening geographic reach. At the same time, the unique investor base contributing through systematic investment plans (SIPs) has grown sharply from about 3.1 crore in FY20 to over 11 crores by FY25, underscoring the shift toward long-term, disciplined investing.

Market Activity
Real Gross Value Added (GVA) is estimated at Rs. 184.50 lakh crore (US$ 2.04 trillion), up from Rs. 171.87 lakh crore (US$ 2.07 trillion) in FY 2024–25, indicating a growth of 7.3%, while Nominal GVA is expected to expand to Rs. 323.48 lakh crore (US$ 3.59 trillion) from Rs. 300.22 lakh crore (US$ 3.62 trillion), marking a growth of 7.7%. Collectively, these trends highlight India’s position as one of the fastest-growing major economies, supported by broad-based expansion across sectors.
India registered 301 Private Equity (PE) deals worth Rs. 49,745 crore (US$ 5.7 billion) in Q3 2025, recording a 7% rise over the previous quarter. India-focused PE-VC funds raised Rs. 21,576 crore (US$ 2.47 billion) across 22 funds, a 148% YoY increase, driven by strong inflows into the IT & ITeS sector (US$ 2.4 billion). Mumbai led in investment value, while Bangalore topped in deal volume, reaffirming their positions as India’s leading investment hubs.
On the FDI front, according to the Department for Promotion of Industry and Internal Trade (DPIIT), India's cumulative FDI inflow stood at Rs. 99,08,749 crore (US$ 1.12 trillion) between April 2000-September 2025.
From April 2000-September 2025, India's service sector attracted the highest FDI equity inflow of 16% amounting to Rs. 8,09,564 crore (US$ 123.94 billion), followed by the computer software and hardware industry at 16%, amounting to Rs. 8,62,922 crore (US$ 119.74 billion), trading at 6% amounting to Rs. 3,58,667 crore (US$ 50.35 billion), telecommunications at 5% amounting to Rs. 2,41,901 crore (US$ 40.16 billion), and automobile industry at 5% amounting to Rs. 2,62,237 crore (US$ 39.43 billion).
India also had major FDI inflows during April 2000-September 2025, coming from Singapore at Rs. 13,21,127 crore (US$ 186.82 billion) with a total share of 24%, followed by Mauritius at 24% with Rs. 11,22,807 crore (US$ 183.66 billion), the USA at 10% with Rs. 5,50,451 crore (US$ 77.27 billion), the Netherlands at 7% with Rs. 3,77,095 crore (US$ 54.93 billion), and Japan at 6% with Rs. 2,93,864 crore (US$ 45.61 billion).
India’s SME IPO market witnessed exceptional depth and breadth in 2025, reflecting strong risk appetite and widening participation across sectors such as manufacturing, logistics, healthcare, technology, FMCG, and services. 268 SME IPOs were launched during the year, collectively mobilising around Rs. 12,112 crore (US$ 1.39 billion), underscoring the growing role of capital markets in funding small and mid-sized enterprises.
Recent Developments/Investments
Recent speedy infrastructure investments, the inclusion of more sectors under the PLI scheme, an increase in public investments, and increasing PE/VC activity have led to plenty of investments in the Indian market. A stabilizing economic backdrop and financial oversight have provided investors with a perfect opportunity to invest in the country and have made India a rising economic powerhouse. Some of the recent investments and developments in this space are as follows:
Government Initiatives
The steps taken by the Government during the last few years to attract investments have borne fruit, as is evident from the record volume of FDI inflow that was received in the country in FY22. The government has launched policies that significantly simplify the ease of doing business, as evidenced by India's jump from rank 142 in 2015 to rank 63 in 2020 in the Doing Business Reports of the World Bank. Some of these policies are:
Road Ahead
India’s investment environment is set to strengthen further, driven by a stable reform agenda, expanding domestic demand, and rising confidence among global and domestic investors. In the years ahead, capital deployment is expected to concentrate on scaling manufacturing capacities, upgrading infrastructure networks, and advancing digital adoption across sectors. Flagship initiatives such as the Production-Linked Incentive framework, large infrastructure programmes, and the transition towards clean energy and electric mobility are likely to remain key enablers of investment inflows.
The next stage of development is expected to be marked by wider participation from small and medium enterprises, start-ups, and innovation-led sectors, including artificial intelligence, semiconductors, and climate-focused technologies. Greater formalisation and deeper financial inclusion are also improving market access and broadening the base of investible opportunities.
India’s structural strengths continue to support its attractiveness as an investment destination. A young workforce, rising disposable incomes, ongoing urban expansion, and a growing middle class are creating sustained demand across sectors.

At the same time, regulatory simplification, logistics modernisation, and sustainability-oriented policies are improving ease of doing business and operational efficiency.
Looking ahead, policy continuity, reform momentum, and increasing global interest in India’s digital and green transition are expected to sustain investment activity. With a maturing innovation ecosystem and deeper capital markets, India is well positioned to offer long-term opportunities across diverse industries and asset classes.




