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India eyes green channel for European investments

By Sohail Khan 21 August 2026, 5:30 am

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Business News›News›Economy›Policy›India weighs facilitating European, UK investments via green channel

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India weighs facilitating European, UK investments via green channel

Synopsis

India is creating a dedicated channel to ease European and British company investments. This mechanism will offer dedicated support and help investors navigate government approvals. The initiative aims to facilitate capital flow beyond just trade agreements. Senior officials will directly monitor this new investor facilitation process. This move follows recent liberalizations in sectors like insurance and banking.

Untitled design - 2026-08-21T004738 — India plans a “green channel” to fast-track European and British investments and help companies navigate government approvals

New Delhi: India is seeking to make it easier for European and British companies to invest in the country, setting up a “green channel” that will provide dedicated handholding and help investors navigate government approvals.

The mechanism is likely to be on the same lines as ‘Japan Plus’ and ‘Korea Plus,’ which facilitate and fasttrack investment proposals from the two countries.

“A mechanism will be created to facilitate entry of investors,” a senior government official told ET

There was a demand from the UK for India to have a nodal agency for its investment-related approvals and setup a single window for its investors for ease of doing business, said a person aware of the talks.

The UK is India’s sixth largest inward investor. It has made cumulative equity investments of $35 billion until September 2024. India’s outward investment in the UK was $19 billion until March 2024.

Foreign direct investment (FDI) equity inflow from the UK was $1 billion in FY26.

Read more: Want a Rolls-Royce or Land Rover? Premium cars to go cheaper by Rs 1-3 crore thanks to UK FTA

As of July last year, there are 971 Indian companies operating in the UK that employ over 1 lakh people.

Recent Liberalisation

Through this initiative, the government wants to ensure trade deals with the European Union and the UK aren’t simply limited to trading in goods and services, but also drive investments into India.

The move to set up the dedicated desk for investors from the EU and the UK got an impetus after the India-UK Comprehensive Economic and Trade Agreement, which came into force July 15. Similarly, the India-EU FTA, touted as the “mother of all deals,” is likely to be signed by this year-end, with the two sides having completed the legal scrubbing of the text of the pact.

Britain had asked India for a nodal agency to facilitate its investment-related approvals and set up a single window for its investors for ease of doing business, said a person aware of the talks.

The UK is India’s sixth-largest inward investor. It has made cumulative equity investments of $35 billion till September 2024, according to the latest available data. India’s outward investment in the UK was $19 billion till March 2024. The UK made equity foreign direct investments of $1 billion in India last fiscal year.

There are 971 Indian companies operating in the UK employing more than 100,000 people as of July 2025, while 667 British companies are present in India, with more than 500,000 employees.

The proposed setting up of the green channel assumes significance in light of India’s recent liberalisation, allowing 100% FDI in insurance sector and enhanced investment limits of 74% in banking, alongside a liberalised bank branch licensing framework, allowing eligible foreign banks to open up 15 branches over a four-year period.

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India foreign investmentUK investment in IndiaEU investment in IndiaFDI in IndiaIndia UK trade relationsindia us companiesindia uk newsindia eu newsindia uk trade deal

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