India eyes green channel for European investments

Meanwhile, the Economic Times daily newspaper is available online now.

Key points

• The mechanism is projected to be on the same lines as 'Japan Plus' and 'Korea Plus, ' which facilitate and fasttrack investment proposals from the two countries.
• It has created cumulative equity investments of $35 billion until September 2024.
• India foreign investmentUK investment in IndiaEU investment in IndiaFDI in IndiaIndia UK trade relationsindia us companiesindia uk newsindia eu newsindia uk trade accord.
• India is creating a dedicated channel to ease European and British firm investments.
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Meanwhile, the Economic Times daily newspaper is available online now. India weighs facilitating European, UK investments via green channel. India weighs facilitating European, UK investments via green channel. ET BureauLast Updated: Aug 21, 2026, 05: 30: 00 AM IST.

India is creating a dedicated channel to ease European and British firm investments. This mechanism will offer dedicated backing and assist investors navigate administration approvals. The initiative intends to facilitate capital flow beyond just trade agreements. Senior authorities will directly monitor this new investor facilitation process. This move follows recent liberalizations in sectors like insurance and banking.

New Delhi: India is seeking to create it easier for European and British businesses to invest in the country, setting up a "green channel" that will provide dedicated handholding and support investors navigate administration approvals. The mechanism is projected 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 administration official informed ET.

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Senior administration office-holders will directly monitor the mechanism to ensure expeditious redressal of problems, the official remarked.

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, remarked a person aware of the negotiations. The UK is India's sixth largest inward investor. It has created 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.: 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 firms operating in the UK that employ over 1 lakh residents. Recent Liberalisation Through this initiative, the administration wants to ensure trade deals with the European Union and the UK aren't simply limited to trading in goods and services, but additionally drive investments into India. The move to set up the dedicated desk for investors from the EU and the UK obtained an impetus after the India-UK Comprehensive Economic and Trade Agreement. It came into force July 15. Similarly, the India-EU FTA, touted as the "mother of all deals, " is projected 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, remarked a person aware of the negotiations. The UK is India's sixth-largest inward investor. It has created 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 created equity foreign direct investments of $1 billion in India last fiscal year. While 667 British firms are present in India, with more than 500, 000 employees, there are 971 Indian firms operating in the UK employing more than 100, 000 residents as of July 2025. 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. Add Now!

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Taken together, the developments around india eyes green channel for European investments point to a situation that is still moving, and the coming days should bring more clarity.