Synopsis: The Government of India with its 15 policy initiatives across sectors such as, manufacturing incentives, digital infrastructure, regulatory reform, and industrial corridors, have attracted domestic and foreign capital at a large scale.
With the scenario of cumulative FDI inflows crossing US$ 1.16 trillion and real GDP projected to grow approx. 6.5% in FY26 the initiatives driving this momentum address every dimension of the investment lifecycle from land and approvals to taxation, logistics, and technology.
15 Government Initiatives Boosting Investments in India
1. Make in India
Make in India launched in 2014 has built industrial infrastructure across 27 sectors and the FDI inflows for FY 2025-26 reached US$ 58.85 billion, which is a 18% year-on-year increase. In a major endorsement of India’s manufacturing credentials, India Optel Limited signed a collaboration with Safran Electronics & Defense in December 2025 for local manufacturing of two combat-proven defence systems under this scheme.
2. Production Linked Incentive (PLI) Scheme
In March 2025, the Cabinet approved a ₹22,919 crore PLI scheme for non-semiconductor electronics components, display modules, lithium-ion cells, and capacitors, to make the domestic ecosystem for production. Under this scheme, incentives of 4% to 18% on incremental sales across 14 sectors with a ₹1.91 lakh crore outlay, is offered.
3. Startup India
Under this scheme, tax exemptions, simplified compliance, and ₹10,000 crore FoF support is provided. The programme has recognised 2,01,335 startups and has generated over 21 lakh jobs. India recorded 316 PE-VC deals valued at ₹82,660 crore (approx. US$ 9.1 billion) in the first quarter of 2026, which showed the consistent participation of the investors even in the times where the global and domestic markets are uncertain.
4. Digital India
Digital India was launched in 2015 to build broadband infrastructure and the capacity for e-governance. In February 2026, Adani Group announced its plans to invest ₹8,83,800 crore (US$ 100 billion) by 2035 to develop the renewable energy-powered, AI-ready hyperscale data centres, to make India a global technology hub.
5. PM Gati Shakti
1,500+ data layers for coordinated multi-modal infrastructure planning integrating 16 ministries, with a ₹111 lakh crore investment target. To enhance the Indian aerospace sector through research, innovation, and talent development, Airbus launched a Centre of Excellence for aerospace studies at Gati Shakti Vishwavidyalaya (GSV) in Vadodara, Gujarat.
6. National Single Window System (NSWS)
One digital interface for both central and state approvals, the Business Reforms Action Plan (BRAP) 2026 to strengthen state-level systems. Due to this simplified approval ecosystem, Amazon has announced plans to invest ₹2,90,000 crore (US$ 35 billion) across its India businesses through 2030, focusing on AI-driven digitisation, export growth, and job creation.
7. India Industrial Land Bank
The IILB enables the investors to move from site identification to approval initiation within the same digital ecosystem which is a GIS-enabled repository for pre-verified industrial land parcels and is integrated with the NSWS. Adani Group announced plans in December 2025 to invest ₹1,00,000 crore (US$ 12 billion) in its airports business over the next five years, at an initial cost of ₹19,650 crore which illustrates the scale of infrastructural investment which is backed by IILB land ecosystem supports.
8. Atmanirbhar Bharat
This scheme prioritizes self-reliance across all the sectors including defence, pharma, and energy, the initiative catalysed the PLI Scheme and Semiconductor Mission. For example, India became export surplus in FY25 with ₹2,280 crore, and the domestic value addition reached 83.7%, as of March 2025.
9. GST Reforms
GST reduced multi-state compliance burden and further the monthly collections consistently exceeded ₹1.7 lakh crore through FY26 indicating strong economic reform. Because of this transparent tax framework many investments and developments became possible including, ArcelorMittal’s announced three new 1 GW renewable energy projects in Maharashtra, Rajasthan, and Gujarat with a total capital expenditure of ₹7,500 crore, which will take total renewable capacity in India to 2 GW.
Also read: Andhra Pradesh vs Tamil Nadu: Which State Will Be South India’s Leading Investment Hub by 2035?
10. Corporate Tax Reduction
India reduced the base corporate tax rate from 30% to 22% and introduced a concessional 15% for new manufacturers. FDI equity inflows during April–December 2025 grew 22% year-on-year to ₹4,16,709 crore (US$ 47,874 million).
11. Liberalised FDI Policy
100% FDI is now permitted under the automatic route across the sectors including, manufacturing, telecom, NBFCs, and railways. India has attracted capital from across 170+ countries, states and UTs and 63 sectors. As the effect of this, Bharti Airtel and Google announced a strategic partnership in October 2025 to set up India’s first AI hub in Visakhapatnam, with a long-term investment of ₹1,25,000 crore (US$ 15 billion) including gigawatt-scale data centres and the subsea cable infrastructure.
12. Labour Codes Reform
The reform simplified compliance and introduced fixed-term employment flexibility which consolidates 44 central laws into 4 codes between 2019 and 2020. For example, VinFast manufacturing facility in Tamil Nadu which is spread across 400 acres with initial capacity of 50,000 EVs per year scalable to 1,50,000 units generates thousands of direct and indirect jobs under this reformed labour codes framework.
13. India Semiconductor Mission
This mission under the PLI scheme, backed by ₹76,000 crore with the central government paying half of the capital costs, and 12 projects with ₹1.6 lakh crore in commitments have been approved.
14. National Logistics Policy
NLP operates through the Unified Logistics Interface Platform integrating 35+ government data systems targeting to reduce the logistics costs from 13% to 14% of GDP to approx. 8% directly improving the export competitiveness for PLI manufacturers across electronics, pharma, and food processing. A project critically dependent on NLP-driven port-rail logistics connectivity is BPCL’s collaboration on a greenfield refinery and petrochemical complex near Ramayapatnam Port in Andhra Pradesh, with an estimated investment of ₹1,00,000 crore (US$ 11 billion).
15. Industrial Corridors Programme
Under the National Industrial Corridor Development Programme (NICDP), various projects have been implemented across 11 corridors that support transition to low-carbon cities, and ₹3000 crore in Budget 2026-27 is allocated to National Industrial Corridor Development and Implementation Trust (NICDIT).
All in all
India has become more robust with these 15 policy initiatives by the government of India which collectively reduces or removes every hurdle across the investment lifecycle. The FDI record of US$ 58.85 billion in FY26 and GDP growth consistent above 7%, becomes the structural foundation for long-term capital commitment to India.
Written by Jahnavi
