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हिन्दी — Read in HindiForeign investment
Investment into India from abroad, and the treaties that protect it.
Model Bilateral Investment Treaty
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India's model Bilateral Investment Treaty is the template for its treaties protecting investment with other countries; the model in force dates from 2016.
What changed
9 Jun 2026Briefnewly addedA revised model, still being drafted, would cut the time a foreign investor must spend in Indian courts before international arbitration to two years from five. Officials said it was leaning towards no most favoured nation clause. Mains: The five year wait in Indian courts had been seen as a deterrent to foreign investors, which a shorter wait is meant to remove. The New Indian Express, 9 Jun 2026
Net foreign direct investment
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Net foreign direct investment (FDI) is gross FDI inflows less repatriation by foreign investors and outward investment by Indian firms.
What changed
27 Sep 2026Briefnewly addedNet FDI reached US$7.35 billion in July 2026, the highest since May 2021, and net FDI for April to July was up 38 per cent. Mauritius, the United Arab Emirates and the United States supplied about 70 per cent of equity inflows. Reserve Bank of India, 27 Sep 2026
11 Jun 2026Briefnewly addedGross FDI inflows were US$ 94.6 billion in 2025-26, but net FDI was only US$ 7.6 billion. The gap came from repatriation by financial investors and outward investment by Indian firms. The Hindu, 11 Jun 2026
India and Israel Bilateral Investment Treaty
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The India and Israel Bilateral Investment Treaty, signed on 8 September 2025, protects the investments of each country's investors in the other.
What changed
4 Jul 2026Briefnewly addedThe treaty entered into force, making Israel the first Organisation for Economic Co-operation and Development (OECD) member to accept India's 2016 model treaty. Investors must pursue local remedies for three years, down from five under India's model treaty, before going to international arbitration, and taxation is carved out. Department of Economic Affairs, Ministry of Finance, 4 Jul 2026 · Business Standard, 8 Sep 2025: India reduces local remedies exhaustion period to 3 yrs for Israeli investors under BIA (opens in a new tab)
Export inventory in foreign funded e commerce
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Foreign direct investment (FDI) in Indian e commerce is governed by the Foreign Exchange Management (Non debt Instruments) Rules, 2019, which allow it in the marketplace model.
What changed
2 Sep 2026Briefnewly addedThe Department of Economic Affairs amended the rules to let foreign funded e commerce firms hold inventory of goods made in India solely for export. FDI in inventory based e commerce for domestic sales remains prohibited, so only the marketplace model serves Indian buyers. Department of Economic Affairs, Ministry of Finance, 2 Sep 2026