India Draws $51 Billion FDI in last six months as Policy Push

• India attracted $51 billion in FDI in six months, reflecting strong global investor confidence.

• Government is redirecting foreign capital toward manufacturing, R&D, and technology-intensive sectors.

• April–June 2025 FDI rose 17% year-on-year to $26.61 billion.

• Policy focus supports deep-tech startups commercialising advanced research.

India has attracted nearly $51 billion in foreign direct investment over the past six months, underscoring steady confidence among global investors as the government intensifies its emphasis on manufacturing, advanced technology and research-driven startups. The update was shared on Wednesday by Amardeep Singh Bhatia, Secretary at the Department for Promotion of Industry and Internal Trade (DPIIT).

Bhatia noted that the government is increasingly steering overseas capital toward sectors that strengthen domestic production capabilities and research infrastructure. The objective, he said, is to ensure that foreign investment contributes to durable economic value instead of being concentrated largely in consumption-oriented industries. This strategy is part of a broader effort to establish India as a key global centre for manufacturing and innovation, while nudging both international and local investors to support technology-heavy ventures that typically require longer development timelines.

Official data reflects this momentum. Provisional figures show that FDI inflows reached approximately $26.61 billion during the April–June 2025 quarter, marking a 17% increase compared with the same period a year earlier.

Emphasis on Deep-Tech and Research Commercialisation

Bhatia highlighted that government policy is now geared toward nurturing a new wave of startups built on advanced research. These enterprises often operate outside traditional consumer-facing models and focus instead on translating scientific or technological breakthroughs into marketable solutions.

He explained that such startups may produce intermediate components or end products, but their defining feature is the commercialisation of deep research. Over the past ten years, collaboration between research institutions and the startup ecosystem has expanded through incubators and formal platforms. The government is now seeking to scale these linkages with significantly larger financial commitments.

Public funding for research-led innovation has risen sharply, including a ₹1 lakh crore initiative designed to support projects that convert laboratory research into commercially viable products over time. According to Bhatia, this programme provides direct funding aimed squarely at enabling the journey from research to market.

In addition to direct grants, the government has committed roughly ₹10,000 crore through a fund-of-funds mechanism, along with targeted sectoral schemes that back startups rooted in deep scientific work. Programmes such as Innovations for Defence Excellence (iDEX) are playing a key role in assisting young companies that are transforming high-end research into deployable products, particularly in strategic and technology-intensive domains.

Rising Private Capital and Corporate Participation

Bhatia said interest from private investors in deep-tech and R&D-focused startups is already gaining traction. Many long-term funds, he noted, are increasingly willing to commit patient capital once clear policy frameworks and institutional support systems are in place.

To further strengthen ties between large companies and startups, the government will observe National Startup Day on January 16. The event is expected to bring together around 3,000 startups and will be inaugurated by Prime Minister Narendra Modi. The focus will be on fostering deeper collaboration between corporates and startups, especially in manufacturing and research-driven segments such as deep technology.

Officials believe that the combination of sustained FDI inflows and growing participation from long-horizon private investors will play a crucial role in reinforcing India’s innovation-led growth path in the years ahead.