Indian firms invested nearly $16 billion in US over five years, govt tells Parliament

Indian companies invested $15.9 billion in the United States between FY22 and FY26, with financial services and manufacturing accounting for the bulk of the overseas investments, the government informed Parliament on Tuesday.

In a written reply, the Ministry of Commerce and Industry said Indian entities invested more than $4 billion in the US during FY26, following investments of $3.44 billion in FY25.

Of the cumulative investment, financial, insurance and business services accounted for $8.6 billion, followed by manufacturing at $3.6 billion and community and social services at $1.8 billion. Investments in agriculture and mining stood at $15.8 million.

The ministry said the liberalised Overseas Direct Investment (ODI) framework has enabled Indian companies to expand their global footprint, improving their international competitiveness while strengthening the domestic economy.

Government continues trade engagement with US

Replying to a separate question, the ministry said the government remains engaged with the United States on bilateral trade issues.

The response comes as the US considers changes to its tariff regime. US Trade Representative Jamieson Greer has indicated that new tariffs of up to 12.5% could be imposed on several countries over concerns related to forced labour practices. The current 10% tariff imposed under Section 122 of the US Trade Act is scheduled to expire on July 24.

India and the US had announced a trade agreement in February 2026, followed by a joint statement. However, subsequent developments, including changes to US tariff policies, have kept trade discussions active.

Startup India, PLI schemes gather pace

The government also highlighted progress under the Startup India Seed Fund Scheme, stating that 219 incubators have been selected with an approved funding of ₹945 crore. Of this, ₹650 crore had been disbursed to incubators as of June 30, 2026.

On the Production Linked Incentive (PLI) schemes, the government said the programme has attracted over ₹2.4 lakh crore in investments, generated more than 14.15 lakh jobs, and led to exports worth over ₹15.2 lakh crore since its launch.

Among sectors, high-efficiency solar PV modules attracted the highest investment at ₹64,873 crore, followed by pharmaceuticals (₹45,158 crore), automobiles (₹44,326 crore), specialty steel (₹23,896 crore), and large-scale electronics manufacturing (₹20,580 crore).

Single-brand retail attracts more FDI than multi-brand

The government said cumulative foreign direct investment (FDI) into single-brand retail trading stood at $1.52 billion between April 2021 and March 2026. However, annual inflows declined to $179.25 million in FY26 from $486.66 million in FY22.

In contrast, cumulative FDI into multi-brand retail during the same period stood at $34.38 million, with annual inflows rising to $9.7 million in FY26 from $7.47 million in FY22.

India currently permits 100% FDI under the automatic route in single-brand retail, while 51% FDI is allowed in multi-brand retail, subject to specified conditions.

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