India’s policy shift over the last two years is not incremental; it is structural. The government has liberalised foreign investment rules, allowing 100% foreign direct investment (FDI) in several strategic sectors through the automatic route. This clearly invites global firms to establish, expand, and manufacture in India. This is a pivotal moment for companies that have been watching India from afar: now is the time to move from interest to action.
Why it matters
- Access to India’s consumption market of 1.4 billion people with rising purchasing power.
- Faster routes to set up majority-owned operations: automatic approvals reduce friction and calendar time to market.
- Policy clarity in high-value sectors (telecom, space, pharmaceuticals) that demand scale, technology transfer and long-term capital.
At a glance: the eight strategic sectors
Invest India highlights eight strategic sectors now open to 100% FDI, spanning finance, extractives, manufacturing, and high-tech activities. See the table and chart below for a concise summary.
Practical next steps for global businesses
- Map your segment: confirm whether your exact activity is within the automatic route or requires government approval.
- Regulatory due diligence: line up local counsel and regulatory advisors early — sectoral nuances (e.g., local sourcing, brownfield vs. greenfield) matter.
- State-level incentives: compare Indian states (land, power, labour flexibility and incentives) before finalising location.
- Partnership vs WOS (wholly owned subsidiary): run financial and tax scenarios for both structures; sometimes, hybrid models are optimal.
If your board is asking, “when do we enter?”, the correct answer is: start now. Walmond Consultancy LLP helps international companies convert policy opportunities into executable India strategies, from compliance mapping and local incorporation to partner search and state incentives. If you would like a sector-specific checklist or a short briefing for your leadership team, get in touch, and we’ll prepare a focused playbook tailored to your industry and risk appetite.
