The quarterly briefing for cross-border capital
The India FDI Index.
A quarterly index tracking foreign investment into India — with a lens on UK companies: how many operate here, the sectors they back, where the next wave of capital is heading, and the partnership, joint-venture and manufacturing opportunity as the UK–India CETA takes effect. Compiled from the Britain Meets India Tracker and Vrkan:AI corridor indicators.
UK investment into India
The corridor’s core signal: the UK’s footprint in India, set against total inflows as per publicly available data.
| Metric | Latest | Note |
|---|---|---|
| UK companies operating in India | 794 | Britain Meets India 2025 (5th edition) |
| UK FDI stock in India | £19.1 billion | ~1% of UK outward FDI stock |
| UK rank among investors in India | 6th | >US$35bn since 2000 (~6% of India’s FDI) |
| India total FDI inflows | US$81.0 billion | FY2024–25 |
| India manufacturing FDI | US$19.0 billion | +18% YoY |
UK companies cluster in Maharashtra (38%) and Delhi NCR (29%), with Karnataka and Tamil Nadu emerging as technology and manufacturing hubs. More than half of UK companies in India are MSMEs — underlining how partnerships, not just large-cap entries, drive the corridor.
Sector distribution — FDI into India
Where foreign capital concentrates, as a share of India’s FDI equity inflows — the sectors most relevant to UK entrants highlighted.
| Sector | Share of inflows | Direction |
|---|---|---|
| Services (financial & business) | 19% | ▲ leading |
| Computer software & hardware | 16% | ▲ US$13.9bn latest year |
| Trading | 8% | ◆ range-bound |
| Manufacturing (aggregate) | — | ▲ +18% to US$19bn |
| All other sectors | Balance | — |
▲ growing share · ◆ range-bound. Manufacturing is the fastest-rising destination for foreign capital — the sharp end of the CETA and Make-in-India opportunity for UK firms.
Where the next wave is heading
Signed on 24 July 2025 and in force from 15 July 2026, the UK–India CETA is forecast to lift bilateral trade by £25.5 billion a year in the long run and add £5.1 billion to India’s GDP. Reduced barriers, better services access and stronger IP protection are expected to draw UK capital into Indian manufacturing, EV and clean energy, pharmaceuticals and engineering. The table below is Vrkan’s directional read of where UK investment is most likely to flow next.
| Sector | Near-term driver | Vrkan signal |
|---|---|---|
| Advanced manufacturing & engineering | Make in India, PLI incentives, tariff cuts | ▲ Strong |
| Clean energy & EV technology | Net-zero mandates, green hydrogen, EV push | ▲ Strong |
| Technology, digital & fintech | Digital India, deep talent pool, services access | ▲ Strong |
| Pharmaceuticals & life sciences | IP protections, competitive cost base | ▲ Building |
| Financial & professional services | CETA services chapter, GIFT City | ▲ Building |
| Consumer & retail | 580m-strong middle class, tariff cuts | ◆ Emerging |
Signals are directional and indicative, not forecasts of specific deal value. They reflect announced policy, corridor momentum and Vrkan:AI scoring — not a recommendation on any instrument or transaction.
The partnership, JV & manufacturing opportunity
India’s fastest-growing entry routes for UK firms are collaborative. Manufacturing FDI is up 18%, the PLI schemes span 14 sectors, and joint ventures remain the surest way to unlock local distribution, licences and regulatory relationships. With more than half of UK companies in India already in the MSME bracket, partnership — not a full standalone build — is how most UK businesses land and scale.
- Manufacturing & Make in India. PLI capital incentives, industrial corridors and tariff relief make Indian production newly competitive for UK engineering, EV and clean-energy firms.
- Joint ventures. The preferred route where local distribution, brand equity or regulatory access matter — strongest right now in digital trade, clean energy and advanced manufacturing.
- Channel & supply partnerships. Faster, lighter entry: a vetted Indian partner for distribution, assembly or last-mile delivery, ahead of a fuller build.
How Vrkan bridges the gap
The data points to the opportunity. Turning it into a working India presence takes the right partner and a translator between two very different business cultures. That is our core.
Finding the right partner
We identify, fit-screen and shortlist Indian partners, JV candidates and manufacturing sites against your commercial goals — then make the introductions. Formal legal and financial due diligence is run by qualified specialists you appoint or we coordinate, so you choose from a credible, vetted field rather than a cold market.
Bridging the cultural gap
Fluent in both boardrooms, we translate commercial intent, manage expectations on pace and process, and keep UK leadership aligned with Indian partners and advisers. We attend the meetings, chase the follow-ups and surface issues early — so misunderstandings never become lost deals.
Methodology
The Vrkan India FDI Index blends four data streams:
- Corporate footprint — Britain Meets India Tracker. Publicly available data on UK companies operating in India: count, growth leaders and location.
- Official flows — DPIIT & RBI. Quarterly FDI equity inflows, sector and origin-country breakdowns from publicly available data.
- Bilateral & policy — UK DBT and CETA. UK outward-FDI factsheets and investment forecasts tied to the UK–India trade agreement and Roadmap 2030.
- Vrkan:AI corridor signal. Our GeoPolitical Risk Index contribution — multi-indicator scoring across sanctions, regulation, election cycles and trade-flow disruption, normalised to a corridor-quality adjustment.
The index is directional, not prescriptive. It signals whether corridor conditions for capital into India are improving or weakening relative to the trailing baseline — not which instrument or transaction to pursue. Regulated legal, tax and FEMA/FDI advice stays with qualified professionals you appoint or we coordinate.
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Sources: Publicly available data. Figures indicative and updated each quarter.