Only 3 foreign manufacturing cos. set up shop in India in FY25

Despite Government initiatives to boost domestic manufacturing, only three foreign manufacturing companies established operations in India during fiscal year 2024-25, according to Ministry of Corporate Affairs data. This contrasts with 53 foreign companies in the services sector. The number of active foreign companies in India has also declined since 2019. Only three foreign manufacturing companies set up operations in India in 2024-25 despite the government’s push to turn the country into a global manufacturing hub, according to data from the Ministry of Corporate Affairs (MCA). In contrast, in the services sector, 53 foreign companies established operations last fiscal – though that too marked a decline from 91 in 2019-20, an ET analysis of official data showed. All three new foreign manufacturing firms belonged to the machinery and equipment segment. They were the only manufacturing firms to set up shop in the country in FY-25 across the industrial sector, which includes manufacturing, construction, electricity, gas, water supply and mining & quarrying companies. The number is the second lowest in the last six years since 2019-20, while the highest was in 2020-21 when 10 new foreign industrial firms were set up. Overall, the share of industrial sector among newly established foreign companies in India declined significantly to 10.2% in 2024-25 from 26% in 2019-20.

Under the Companies Act, 2013, a foreign company is an entity incorporated outside India that conducts business within India. The Government has rolled out several initiatives to spur manufacturing in the country, including Make in India, Atmanirbhar Bharat and the production-linked incentive (PLI) scheme for several sectors. New Delhi had also reduced corporate tax for new investment in the manufacturing sector.

The MCA data also showed that the number of active foreign companies has declined over the years.  A total of 5,228 foreign companies were registered in India as of March 2025. Out of which, 3,286 or 62.9% were active. This marks a drop from March 2019, when 70.8% of registered foreign companies were active.

Source : https://economictimes.indiatimes.com/news/company/corporate-trends/only-3-foreign-manufacturing-cos-set-up-shop-in-india-in-fy25/articleshow/120801612.cms?from=mdr