This is the August edition of Nishith Desai Associates’ monthly financial services newsletter in collaboration with U.S.-India Business Council.

INTRODUCTION

July 2025 continued to reinforce India’s position as a premier destination for global investment, despite ongoing uncertainties in international markets. With the economy maintaining robust growth momentum, and progressive policy reforms driving innovation and transparency, India recorded a sustained influx of foreign direct investments (“ FDI ”). FDI inflows rose to USD 81.04 billion (provisional) in financial year (“ FY ”) 2024–25 (April 2024-March 2025), marking a 14% increase from USD 71.28 billion in FY 2023–24 (April 2023-March 2024). With 6.5% GDP growth, India stands as the fastest growing major economy. 1

Nishith Desa

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