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India draws $51 billion FDI as startups and manufacturing gain momentum

Fresh investment numbers are reinforcing India’s position as a preferred global destination at a time when policy focus and innovation are reshaping the economy. Over the last 6 months, the country has attracted $51 billion in foreign direct investment, signalling strong international confidence.

According to the Department for Promotion of Industry and Internal Trade (DPIIT), the inflows reflect sustained belief in India’s long-term growth story. DPIIT Secretary Amardeep Singh Bhatia said investors are responding positively to a stable macroeconomic environment, ongoing policy reforms, and the scale of India’s domestic market.

Manufacturing is emerging as a key driver of this momentum. Innovation-led production, backed by new technologies and startup partnerships, is attracting rising domestic and foreign investments. These inflows are supporting job creation, technology transfer, and expansion of industrial capacity, strengthening India’s role in global supply chains.

The government’s startup push is also playing a central role. National Startup Day 2026, scheduled for 01/16, will spotlight entrepreneurship and innovation across sectors. As part of the event, the government will launch 75 Grand Challenges aimed at encouraging problem-solving in areas such as manufacturing, technology, and services.

Interest has been strong, with over 3,000 participation requests already received. To recognise excellence, 20 National Startup Awards will be presented to startups that have made notable contributions to India’s innovation ecosystem.

Manufacturing growth is increasingly being powered by collaboration between large companies and startups. Corporates are partnering with young firms to scale ideas, improve efficiency, and adopt emerging technologies. This synergy is helping develop new products and processes while supporting the broader goal of positioning India as a global manufacturing hub.

Digital transformation has further amplified this trend. Speaking at the Viksit Bharat Young Leaders Dialogue 2026, Narendra Modi highlighted how Digital India, startup growth, and youth participation are collectively driving economic change. He pointed to rapid expansion in creative and technology-driven sectors led by young innovators.

The Prime Minister also referred to the rise of the ‘Orange Economy’, covering culture, content, creativity, and digital platforms, as a growing contributor to economic activity.

Together, strong FDI inflows, a vibrant startup ecosystem, and innovation-led manufacturing are reinforcing India’s growth trajectory and shaping its next phase of development.

Also read: Viksit Workforce for a Viksit Bharat

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