Investment Policy Monitor
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The Investment Policy Monitor provides the international investment community with up-to-date, country-specific information on recent policy developments affecting foreign direct investment (FDI).
Through its ongoing monitoring of investment policy changes, UNCTAD delivers cutting-edge and forward-looking contributions to investment policy discourse. The Monitor also supports evidence-based policymaking aimed at ensuring that foreign investment contributes to sustainable development. The Monitor also informs the analysis of global and regional investment policy trends featured in the World Investment Report, the Investment Policy Monitor publications and the joint UNCTAD-OECD Reports on G20 Investment Measures.
UNCTAD has tracked changes in national policies affecting FDI on an annual basis since 1992. Over time, the methodology has been revised to enhance the quality and consistency of reporting. The most recent revision, completed in 2024, further refined the monitoring framework and applied the updated classification to policy measures dating back to 2012.
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UNCTAD Investment Policy Monitor The UNCTAD Investment Policy Monitor database compiles official measures affecting FDI adopted by United Nations Member States. These encompass measures explicitly targeting foreign investment (FDI-specific), as well as general investment measures that have a clear impact on such investment (FDI-related).
The measures are either reported directly to UNCTAD by Member States through annual surveys or identified by UNCTAD researchers through publicly accessible sources (such as government websites and specialized policy databases).
The classification of measures as more or less favourable to investors is based solely on their potential impact on investors. The type of measures included in each category are described below. This classification does not reflect any value judgement by UNCTAD on the merit or suitability of the measure.
Classification of the nature of measures
More favourable to investors
Liberalization: includes privatization; lifting of entry restrictions (e.g. opening of sectors to FDI) and entry conditions (e.g. minimum capital requirement); removal (total or partial) of FDI screening or approval mechanisms; lifting of foreign exchange restrictions; liberalization of land access.
Facilitation: includes streamlining of investment procedures (e.g. one-stop shops); greater transparency of investment-related laws and procedures (e.g. information portals); introduction by IPAs and other entities of new services to assist investors (e.g. linkages programmes, investor visa facilitation or alternative dispute resolution mechanisms).
Promotion: includes establishment of IPAs or other institutions with a remit as investment promoters and expansion of their mandate; adoption of investment promotion strategy and plans; introduction of PPPs, auctions, and concessions initiatives or framework; introduction of OFDI promotion initiatives.
Incentives: includes adoption of new tax and financial incentives schemes for investment; introduction of other incentives (e.g. citizenship by investment programmes); adoption of new SEZ-related incentives.
Other regulatory changes: includes enhancement of investor treatment and protection guarantees; easing of labour or migration regulations concerning foreign hires and key personnel; removal of operational restrictions on investment (e.g. local content requirements).
Less favourable to investors
Entry: includes introduction or tightening of entry restrictions (e.g. total or partial ban on FDI in specific sectors); introduction or tightening of entry conditions (e.g. minimum investment threshold, joint venture requirements or State participation in strategic sectors); introduction or expansion of screening mechanisms for national security.
Treatment and operation: includes introduction or expansion of foreign exchange restrictions; introduction or expansion of restrictions on foreign hires and key personnel; removal or reduction of investment incentives; introduction or expansion of post-establishment requirements for local content; reduction of guarantees for investment treatment and protection; introduction or expansion of restrictions on OFDI.
Note: Measures are verified, to the fullest extent possible, by referencing government sources. The compilation of measures is not exhaustive.
Disclaimer: the boundaries and names shown and the designations used on this map do not imply official endorsement or acceptance by the United Nations.
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- India - Introduces incentive schemes for selected industrial sectors
India
Introduces incentive schemes for selected industrial sectors
08 Apr 2025India adopted a series of incentive schemes and policy frameworks in 2025 to support investment in electronics manufacturing, critical minerals recycling, renewable energy and shipbuilding.
On 8 April 2025, the Ministry of Electronics and Information Technology introduced the Electronics Component Manufacturing Scheme, with a budget of ₹22,919 crore (approximately $2.65 billion). The scheme provides fiscal support of up to 25 per cent of eligible capital expenditure over five years to selected qualifying enterprises engaged in the manufacture of electronic components, subassemblies and bare components. Part of the support is linked to employment generation and turnover. Applications opened on 1 May 2025 for a period of two years, and support applies to investments made within five years from the date of approval.
On 3 September 2025, the Union Cabinet approved an incentive scheme with a budget of ₹1,500 crore (approximately $170.26 million) to develop recycling capacity for the separation and production of critical minerals from secondary sources. The scheme provides a capital expenditure subsidy of 20 per cent on plant and machinery, equipment and associated utilities, subject to the commencement of production within a specified timeframe. It also offers support through a subsidy linked to incremental sales over a base year. The total incentive per entity, combining capital expenditure and sales-based subsidies, is capped at ₹50 crore for large entities and ₹25 crore for small entities, with subceilings for operating expenditure support. Eligible feedstock includes electronic waste, lithium-ion battery scrap and other non-electronic waste scrap. The scheme applies from fiscal year 2025–26 to fiscal year 2030–31.
On 15 September 2025, the Ministry of New and Renewable Energy issued the National Geothermal Energy Policy, establishing a framework to promote geothermal energy within the renewable energy sector. The Policy mandates the Ministry to establish a streamlined single-window support system to facilitate regulatory approvals and clearances for geothermal projects. It allows State governments to allocate geothermal sites for exploration for an initial period of three years, extendable by up to two additional years. The Policy also envisages potential fiscal support measures, including exemptions from import duties and the goods and services tax on geothermal equipment and services, tax holidays, accelerated depreciation and property tax exemptions, subject to further inter-ministerial approvals.
On 24 September 2025, the Union Cabinet approved a comprehensive package of ₹69,725 crore (approximately $8.4 billion) to revitalize the shipbuilding and maritime ecosystem. Under this package, the Shipbuilding Development Scheme aims to expand domestic shipbuilding capacity to 4.5 million gross tonnage per year. The scheme includes capital support amounting to ₹9,930 crore (approximately $1.12 billion) for the development of greenfield shipbuilding clusters and ₹8,261 crore (approximately $930 million) for the expansion of brownfield shipbuilding clusters. The specific form of support to be provided under the scheme has not been specified. The package also includes the Maritime Development Fund, the expansion of the Shipbuilding Financial Assistance Scheme, measures to strengthen technical capabilities, and regulatory and policy reform initiatives. These measures will remain in force until 31 March 2036.
Nature of measure:
- Facilitation
- Promotion
- Incentives
Type:
- Promotion and facilitation (Investment facilitation , Investment incentives, Investment promotion)
Industry:
- Primary (Mining and quarrying)
- Manufacturing (Manufacture of computer, electronic and optical products, and electrical equipment)
- Services (Electricity, gas, steam and air conditioning supply, Water supply, sewerage, waste management and remediation activities, Transportation and storage)
Inward FDI:
YesOutward FDI:
NoSources:
- Press Infomation Bureau, Comprehensive 4-Pillar Approach to Strengthen Shipbuilding, Maritime Financing, and Domestic Capacity, https://www.pib.gov.in/PressReleseDetail.aspx?PRID=2170573®=3&lang=2, 24 Sep 2025
- Ministry of New and Renewable Energy, National Policy on Geothermal Energy, https://cdnbbsr.s3waas.gov.in/s3716e1b8c6cd17b771da77391355749f3/uploads/2025/09/202509152136711668.pdf, 15 Sep 2025
- Press Information Bureau of India, Cabinet approves Rs.1,500 crore Incentive Scheme to promote Critical Mineral Recycling in the country, https://www.pib.gov.in/PressReleseDetail.aspx?PRID=2163454®=3&lang=2, 03 Sep 2025
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The Investment Policy Monitor provides the international investment community with up-to-date, country-specific information on recent policy developments affecting foreign direct investment (FDI).
Through its ongoing monitoring of investment policy changes, UNCTAD delivers cutting-edge and forward-looking contributions to investment policy discourse. The Monitor also supports evidence-based policymaking aimed at ensuring that foreign investment contributes to sustainable development. The Monitor also informs the analysis of global and regional investment policy trends featured in the World Investment Report, the Investment Policy Monitor publications and the joint UNCTAD-OECD Reports on G20 Investment Measures.
UNCTAD has tracked changes in national policies affecting FDI on an annual basis since 1992. Over time, the methodology has been revised to enhance the quality and consistency of reporting. The most recent revision, completed in 2024, further refined the monitoring framework and applied the updated classification to policy measures dating back to 2012.
-
UNCTAD Investment Policy Monitor The UNCTAD Investment Policy Monitor database compiles official measures affecting FDI adopted by United Nations Member States. These encompass measures explicitly targeting foreign investment (FDI-specific), as well as general investment measures that have a clear impact on such investment (FDI-related).
The measures are either reported directly to UNCTAD by Member States through annual surveys or identified by UNCTAD researchers through publicly accessible sources (such as government websites and specialized policy databases).
The classification of measures as more or less favourable to investors is based solely on their potential impact on investors. The type of measures included in each category are described below. This classification does not reflect any value judgement by UNCTAD on the merit or suitability of the measure.
Classification of the nature of measures
More favourable to investors
Liberalization: includes privatization; lifting of entry restrictions (e.g. opening of sectors to FDI) and entry conditions (e.g. minimum capital requirement); removal (total or partial) of FDI screening or approval mechanisms; lifting of foreign exchange restrictions; liberalization of land access.
Facilitation: includes streamlining of investment procedures (e.g. one-stop shops); greater transparency of investment-related laws and procedures (e.g. information portals); introduction by IPAs and other entities of new services to assist investors (e.g. linkages programmes, investor visa facilitation or alternative dispute resolution mechanisms).
Promotion: includes establishment of IPAs or other institutions with a remit as investment promoters and expansion of their mandate; adoption of investment promotion strategy and plans; introduction of PPPs, auctions, and concessions initiatives or framework; introduction of OFDI promotion initiatives.
Incentives: includes adoption of new tax and financial incentives schemes for investment; introduction of other incentives (e.g. citizenship by investment programmes); adoption of new SEZ-related incentives.
Other regulatory changes: includes enhancement of investor treatment and protection guarantees; easing of labour or migration regulations concerning foreign hires and key personnel; removal of operational restrictions on investment (e.g. local content requirements).
Less favourable to investors
Entry: includes introduction or tightening of entry restrictions (e.g. total or partial ban on FDI in specific sectors); introduction or tightening of entry conditions (e.g. minimum investment threshold, joint venture requirements or State participation in strategic sectors); introduction or expansion of screening mechanisms for national security.
Treatment and operation: includes introduction or expansion of foreign exchange restrictions; introduction or expansion of restrictions on foreign hires and key personnel; removal or reduction of investment incentives; introduction or expansion of post-establishment requirements for local content; reduction of guarantees for investment treatment and protection; introduction or expansion of restrictions on OFDI.
Note: Measures are verified, to the fullest extent possible, by referencing government sources. The compilation of measures is not exhaustive.
Disclaimer: the boundaries and names shown and the designations used on this map do not imply official endorsement or acceptance by the United Nations.
Share
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