Frequently Asked Questions (FAQs)

Foreign Direct Investment (FDI) in India refers to a substantial, long-term investment by an investor (individual, company, or government) from one country into a business or project in India. The primary feature is that the investor acquires a significant degree of influence or control (usually 10% or more of voting stock, sometimes <10% can be treated as FDI too if investor indicates control/strategic intent) over the management of the foreign enterprise. This distinguishes FDI from purely passive or portfolio investments such as merely buying shares.

The Department for Promotion of Industry and Internal Trade (DPIIT) is the nodal department for the formulation of FDI policy in India. It is responsible for issuing policies, managing and maintaining data on inward FDI based on RBI-reported remittances, and processing foreign investment proposals through the Foreign Investment Facilitation Portal (FIFP). DPIIT ensures proper implementation of FDI policies and reforms, and regular updates and amendments based on regulatory developments.

FDI regulations in India are mainly governed by

• The Foreign Exchange Management Act, 1999 (FEMA)
• Rules and notifications by the Reserve Bank of India (RBI)
• Sector-specific policies by the DPIIT. Two chief routes exist for FDI: (a) Automatic Route - most sectors allow for 100% FDI without government approval, and (b) Government Route - which requires prior government or sectoral ministry approval for notified sectors.

Violations of FDI policy in India are governed by the penal provisions of FEMA. The Reserve Bank of India (RBI) administers FEMA, while the Directorate of Enforcement (ED) under the Ministry of Finance enforces it and investigates any contraventions. The Directorate takes up cases of suspected violations.

• Mode of Payment: FDI in India must be brought in via inward remittance through banking channels, or from Non-Resident External (NRE)/Foreign Currency Non-Resident Bank (FCNR (B)) accounts as per RBI guidelines.
• Remittance/Proceeds: Sale or maturity proceeds (net of taxes) may be remitted abroad or credited to the investor’s repatriable foreign currency or rupee account.
• Reporting: The Indian company or entity receiving FDI must report the inflow to the Reserve Bank of India (RBI) within a specified timeframe and comply with sector-specific and Foreign Exchange Management Act, 1999 (FEMA) guidelines regarding disclosures.

There are two primary FDI entry routes in India

• Automatic Route: No prior government approval needed; only post-facto filings.
• Government Route: Prior government approval required for FDI in sectors/activities specified as such. Application submitted through the Foreign Investment Facilitation Portal (FIFP).

• Application must be filed online at the FIFP portal.
• DPIIT identifies and forwards the proposal to the relevant administrative ministry/department and the RBI for comments.
• Additional clearances (e.g., security) may be required for some cases (e.g., proposals from certain countries).

Documents required: (All in English or apostilled translated copies)

• Signed cover letter
• Board resolution for FDI
• Certificate of Incorporation and MOA/AOA
• Audited financial statements
• Shareholder details
• Know Your Customer (KYC) for foreign investor
• Other sector/transaction-specific documents
• Timelines and checklists are provided within the FIFP SOP

Yes. As per Press Note 3 (2020)

FDI from countries sharing a land border with India (e.g., China, Hong Kong, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar, Afghanistan) can only enter through the Government approval route (not automatically). Applies to direct and indirect investments, as well as investments where the beneficial owner is from these countries. No change to these rules as of June 2025.

Press Note 3 (PN3) Proposal in India refers to FDI applications/proposals triggered by Press Note 3 (2020) i.e., any FDI proposal from, or ultimately controlled by, an entity or individual from a land-bordering country. Such proposals are subject to government approval and strict scrutiny to prevent opportunistic takeovers.

• Amendments are notified via Press Notes issued by DPIIT on its official website - https://www.dpiit.gov.in/
• They are enforced by notifications under the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019.
• Notifications typically take effect from the issue date unless otherwise specified.

Official FDI data and statistics for India are available at

• DPIIT’s FDI section: https://www.dpiit.gov.in/
• Reserve Bank of India (RBI) website: https://www.rbi.org.in/
• The Foreign Investment Facilitation Portal (FIFP) also shares regular bulletins: https://fifp.gov.in/

• Requests for written policy clarifications for FDI policy in India can be sent to DPIIT using contact details on their website - https://www.dpiit.gov.in/connect
• Businesses and investors can also reach out via email or the contact form on the DPIIT or FIFP portal - https://www.dpiit.gov.in/connect or https://fifp.gov.in/ContactUs.aspx
• For links to the official government notifications and current documents, refer to the DPIIT’s site and the Foreign Investment Facilitation Portal (FIFP) - https://www.dpiit.gov.in/ or https://fifp.gov.in/

Clarifications on Foreign Investment Facilitation Portal (FIFP) in India

• You can seek clarifications on FIFP-related issues by referring to the FIFP portal, which is managed by the Department for Promotion of Industry and Internal Trade (DPIIT) - https://fifp.gov.in/
  • Email ID: fifp-dipphelpdesk@gov.in
  • FAQ's FDI Circulars are available.
• Formal clarifications or escalations should be addressed to DPIIT as per their contact details on the portal - https://www.dpiit.gov.in/connect

Top Cluster Location Hubs for Major Sectors in India

• Manufacturing - Delhi-Mumbai Industrial Corridor (DMIC), Chennai, Pune, Gujarat (Sanand, Ahmedabad, etc.)
• IT - Bengaluru, Hyderabad, Gurugram (NCR), Pune
• Finance - Mumbai (India’s financial capital), Gurugram, Bengaluru
• Automotive - Chennai, Pune (Chakan), Gurugram-Manesar-Bawal belt, Sanand (Gujarat)
• Others - NCR (multi-sector), Ahmedabad, Surat (textiles/gems), Coimbatore (textiles/machinery), GIFT city (greenfield smart city)

• Non-residents can invest in Indian companies by purchasing equity shares or convertible securities, subject to sectoral caps and entry routes (automatic or government approval).
• Investments must be through regulated banking channels.
• Companies must comply with prescribed reporting, KYC, and regulatory filings (as per FEMA and RBI guidelines).

A Person of Indian Origin (PIO) is a foreign citizen who was born in India, held an Indian passport, or has parents/grandparents who were Indian citizens. PIO Card scheme has now merged with Overseas Citizen of India (OCI) scheme, which provides various visa and residency privileges. A person is eligible for OCI if they are a spouse of an Indian citizen or an OCI cardholder (with at least 2 years of marriage).

The steps include

• Market research and business plan preparation
• Choose suitable business structure (Private/Public Co., Limited Liability Partnership (LLP), Proprietorship etc.)
• Register business with Registrar of Companies/Registrar of Firms
• Obtain Permanent Account Number (PAN) / Tax Deduction/Collection Account Number (TAN) and other statutory registrations
• Comply with sectoral laws, shop/establishment Acts, and tax registrations

The main regulatory framework in India comprises of

• The Foreign Exchange Management Act (FEMA), 1999 (administered by RBI)
• Department for Promotion of Industry and Internal Trade (DPIIT)
• Securities and Exchange Board of India (SEBI) for capital market and regulated vehicles
• The Foreign Investment Facilitation Portal (FIFP) for government route proposals
• Ministry of Commerce & Industry for policy formulation
• RBI for operational regulations and reporting
• Ministry of Corporate Affairs for corporate restructuring, share issuance, and related compliances.

Yes, a company's authorized capital can be increased in India following legal procedures

• Check Articles of Association for enabling clauses.
• Hold a Board Meeting and an Extraordinary General Meeting (EGM) to approve capital increase.
• Pass required resolutions; file Form SH-7 with the Registrar of Companies (RoC).
• Pay requisite stamp duty and file altered Memorandum/Articles of Association with RoC.

Key reporting requirements in India

• Reporting inflows to RBI via Authorized Dealer bank branch (R-returns).
• FC-GPR (Foreign Currency-Gross Provisional Return) filed by the Indian company within 30 days of issuing equity to a non-resident.
• FC-TRS (Transfer of Shares) for transfer between residents and non-residents.
• Other compliance and annual filings as per SEBI/FEMA guidelines.

Foreign fund instruments (FDI, FPI/FII, ECBs) in India are modes of investment. Foreign fund instruments can be Equity Instruments such as Equity, CCPS, CCD, ECB, FCCB, NCD etc. and are primarily regulated by:

• The Foreign Exchange Management Act (FEMA), 1999 (Reserve Bank of India)
• Department for Promotion of Industry and Internal Trade (DPIIT) policies
• SEBI regulations for capital markets, listed securities
• Notifications and circulars issued by relevant ministries and regulators. Compliance with sectoral caps, reporting, and pricing guidelines is required
• Foreign Exchange Management Act, 1999, and the Consolidated FDI Policy issued by DPIIT. Investments in non-debt instruments are governed by FEMA (Non-Debt Instruments) Rules, 2019, debt instruments are covered under FEMA (Debt Instruments) Rules, 2019
• RBI’s master directions and reporting requirements to ensure transparency and SEBI regulations in case of listed securities and for capital markets.

Trading in Indian securities is carried out mainly on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Trading processes, timings, and index information are detailed on their respective websites - BSE or NSE

SEBI is the key regulator for securities trading, and details can also be found on its portal - SEBI

Foreigners cannot freely trade in all securities like residents. They need:

• SEBI registration (as FPI, FDI investor, etc.)
• RBI/FEMA compliance
• Adherence to sectoral FDI caps

India maintains robust trade relations with the USA, UK, EU, Bangladesh, and other countries through Free Trade Agreements (FTAs), strategic partnerships, and bilateral/multilateral trade pacts. For instance, the India-UK FTA aims to reduce tariffs and boost bilateral trade, similar agreements are being pursued with the US and EU.

Key registrations in India include

• Incorporation with Registrar of Companies (ROC)
• PAN and TAN (tax-related)
• GST (if applicable)
• Bank account in an authorized Indian bank
• Post-remittance, RBI/FEMA reporting

For Automatic route - Registration is not required beforehand, but post-transaction reporting to RBI (such as Form FC-GPR, FC-TRS) and compliance with FEMA guidelines is mandatory. However, for sectors under the approval route, prior approval of the Government of India through concerned ministry is required before issuing shares. Certain sectors like NBFCs, banking, insurance, and payment systems require specific RBI/sectoral regulator approval or registration before receiving FDI.

FPI refers to investment in Indian securities like shares, bonds, and derivatives that do not result in direct control or management (less than 10% equity). Foreign investors must register as FPIs with SEBI, transact through recognized intermediaries (such as custodians), and adhere to prescribed reporting and monitoring conditions.

NRI Portfolio Investments are typically made under the Portfolio Investment Scheme (PIS) in India regulated by the Reserve Bank of India (RBI). The procedure involves:

• Open an NRE (Non-Resident External) or NRO (Non-Resident Ordinary) account with a designated bank.
• Obtain a PAN (Permanent Account Number) and complete Know Your Customer (KYC) norms.
• Open a demat and trading account with a registered broker under the PIS.
• All investments and disinvestments must be routed only through a designated branch of the bank.
• Only delivery-based purchase and sale of securities is allowed; speculative transactions are not permitted.
• Profits and capital gains earned can be repatriated based on whether investments were made via NRE (fully repatriable) or NRO (subject to limits) account, after applicable taxes.

Investment vehicles are financial instruments, structures, or platforms through which investors can invest in assets and securities for the purpose of wealth creation in India. Common types include:

• Mutual Funds
• Exchange-Traded Funds (ETFs)
• Alternative Investment Funds (AIFs)
• Real Estate Investment Trusts (REITs)
• Infrastructure Investment Trusts (InvITs)
• Bonds, stocks, and other pooled investment schemes

Indian Depository Receipts are instruments issued by foreign companies, listed on Indian stock exchanges, allowing Indian investors to invest in the equity of these foreign companies without directly trading on overseas exchanges.

• Direct Foreign Investment (FDI): The foreign investor acquires a significant stake in a company in India, usually exercising management control (e.g., setting up a foreign subsidiary or acquiring significant equity).
• Indirect Foreign Investment (FPI): They are also called Downstream investments. When a foreign investor invests not directly in the Indian company, but through another Indian company that has foreign investment. Indirect Foreign investment and FPI are not same.

• FDI represents long-term strategic investment in the equity of an Indian entity, often conferring management control or significant influence, and is governed by the Consolidated FDI Policy, FEMA (Non-Debt Instruments) Rules, 2019, and sectoral caps issued by DPIIT.
• FPIs represents portfolio investments short-term, market-driven investments in listed securities without management control regulated primarily under SEBI’s FPI Regulations, 2019, and monitored by RBI for FEMA compliance.
• FII regime has been subsumed under the broader FPI framework to streamline foreign portfolio inflows. The transaction involving dealing in securities by a foreign portfolio investor shall be only through stock brokers registered with the Board.

Yes, the FII regime was merged into the FPI regime in June 2014 in India.
FIIs, Sub-accounts, and QFIs could transition by registering as FPIs with SEBI. The registration and compliance process was streamlined under the new SEBI framework, removing earlier direct SEBI registration and using a risk-based approach.

Qualified Foreign Investors (QFIs) for India are individuals, groups, or associations from FATF-compliant countries permitted to invest directly in Indian equity markets. The QFI category was merged into the FPI regime from June 2014 for broader participation and market deepening. Hence, QFI as a separate category no longer exists.

• A DDP in India is an entity registered with SEBI, authorized to grant FPI registration, conduct due diligence, maintain compliance, and serve as the point of contact for regulatory submissions.
• DDPs are responsible for record-keeping, reporting, and liaising with SEBI and depositories for FPIs’ operational requirements.

Foreign investors can establish business in India by

• Incorporating a Private Limited Company, Public Limited Company, or a Wholly-Owned Subsidiary (where sectoral policy permits)
• Ensuring at least one director is resident in India
• Fulfilling regulatory requirements with the Ministry of Corporate Affairs (MCA)
• Complying with FDI and sectoral regulations, and opening a business bank account in an RBI-approved bank

Yes. Foreign entities can set up in India through

• Branch Office (BO): For business/earning purposes.
• Liaison Office (LO): For representation/communication only, not for commercial activities.
• Project Office (PO): Established for executing a specific project in India.
• Each has distinct eligibility and permitted activity criteria, subject to RBI approval and compliance.

Yes, Indian Limited Liability Partnerships (LLPs) can receive FDI but only in sectors where 100% FDI is permitted under the automatic route and where there are no FDI-linked performance conditions. FDI is not allowed for LLPs engaged in sectors like agricultural/plantation, print media, or real estate.

“Downstream investment” in India refers to investments made by an Indian entity, which has FDI, into the capital instruments or capital of another Indian entity. For example, if an Indian company with foreign investment invests in another Indian company or LLP, it is termed as downstream investment.

Indirect foreign investment means FDI received by an Indian company as a result of investments made by other Indian companies which already have foreign investment. For instance, if a foreign investor owns more than 50% of Company X (Indian), and Company X invests in Company Y (Indian), Company Y is considered to have received indirect foreign investment via Company X’s foreign ownership.

Total foreign investment in India is the sum of

• Direct foreign investment: Investment directly made by a non-resident into the Indian company/LLP.
• Indirect foreign investment: Investment received through another Indian company/LLP which itself has foreign investment.

• Issuance of shares to foreign investors: Must not be at a price lower than the fair market value, as per valuation by a merchant banker or chartered accountant (using internationally accepted pricing methodology).
• Transfer of shares (non-resident to resident): Price should not exceed the fair value, determined as above.
• Transfer of shares (resident to non-resident): Price should be equal to or higher than the fair value.

Yes, all companies registered in India, including those with FDI, must have at least one “resident director” who has stayed in India for at least 182 days in the financial year, as mandated by the Companies Act, 2013.

Yes, foreign nationals can be appointed as directors in an Indian company that receives FDI. However, the company must still ensure compliance with the requirement of having at least one resident director in India.

Appointment of a foreign director requires

• Digital Signature Certificate (DSC)
• Director Identification Number (DIN)
• Passport and proof of address (notarized and apostilled)
• Board/shareholder resolution and consent to act as director
• Disclosure of interests and declarations as per Companies Act.

A “resident director” is an individual who has lived in India for at least 182 days during the financial year, as per Section 149(3) of the Companies Act, 2013.

Generally, there are no minimum capital requirements for incorporating a company with FDI in India, unless specified by sectoral regulations or other laws (e.g., NBFCs, insurance).

Yes, foreign investors can hold up to 100% of the shares in Indian companies in many sectors under the automatic route, except in sectors with specific caps or prohibitions.

As per FEMA (Non-Debt Instruments) Rules, 2019 and the Consolidated FDI Policy, the permitted shareholding structures for FDI-receiving companies in India are: Private Limited Companies, Public Limited Companies, listed or unlisted, LLPs where 100% FDI is allowed under automatic route and certain conditions as per FDI policy.

Foreign Exchange Management (Non-debt Instruments) Rules, 2019 - Rule 6(1) specifies that FDI in India can be received only in equity instruments (equity shares, compulsorily convertible preference shares, compulsorily convertible debentures, and share warrants).

All companies in India irrespective of FDI must maintain a registered office in India that is capable of receiving and acknowledging all communications and notices. The statutory documents and registers of the company shall be kept at the registered office, which must display the company’s name and registration number at the premises. Supporting documents like utility bills and lease agreements along with photographs of the office with atleast one Director is required.

Key prohibited sectors for FDI in India

• Lottery businesses (government/private/online)
• Gambling and betting (including casinos)
• Chit funds (except NRIs/OCIs on non-repatriation basis)
• Nidhi companies
• Trading in Transferable Development Rights (TDRs)
• Real estate business or construction of farm houses
• Manufacturing of cigars, cheroots, cigarillos, and cigarettes of tobacco or tobacco substitutes
• Sectors not open to private sector: atomic energy, railway operations (except permitted sub-activities)
• Foreign tech collaboration in lottery and gambling.

Sectoral caps and entry routes in India vary

• Sectors have specified FDI caps (e.g., 49%, 74%, 100%).
• Certain thresholds may shift entry from automatic to government route (e.g., up to 74% automatic, beyond 74% government).

Examples:

• Defence: Up to 74% automatic, beyond that government route.
• Telecom: Up to 49% automatic, beyond that government route.
• Multi-brand retail: 51% government route only.

Details for each sector are listed in the DPIIT’s consolidated FDI policy and website - https://www.dpiit.gov.in/

Yes, Indian startups can receive up to 100% FDI in most sectors under the automatic route subject to compliance with sectoral restrictions. DPIIT-recognized startups and most private limited companies can raise funds from foreign investors, venture capital, and institutional funds.

• Foreigners/NRI are generally not allowed to set up traditional partnership or proprietorship firms in India under FDI policy.
• Foreigners could open a Branch Office / Liaison Office / Project Office in India, without incorporating a Company.
• LLPs and companies are the preferred mode for foreign investment, as they are permitted under automatic route for most sectors.
• Any partnership/proprietorship setup involving foreigners/NRI is only possible with stringent restrictions and mostly on a non-repatriation basis.

Branch offices of foreign companies in India may engage in

• Export/import of goods
• Professional or consultancy services (subject to sector regulation)
• R&D in areas of parent company activity
• Technical/financial collaboration between Indian and group companies
• Representing parent companies as buying/selling agents
• IT and software development services
• Providing technical support for goods/services supplied by parent company
• Acting as a shipping/airline representative
• Retail trading, manufacturing (other than for internal consumption of the branch), and direct retail activities are not permitted.

Foreign Venture Capital Investors (FVCIs) in India can invest in startups or companies engaged in certain sectors like IT, biotechnology, nanotechnology, seed research, research and development of new chemicals, and others as notified by SEBI and RBI. FVCI investments need to be in sectors approved under FDI/FVCI regulations and are subject to government/SEBI notifications.

Yes, FDI is permissible in certain investment vehicles in India that are registered and regulated by SEBI. FDI can be made in:

• Alternative Investment Funds (AIFs)
• Real Estate Investment Trusts (REITs)
• Infrastructure Investment Trusts (InvITs)

These vehicles must comply with applicable SEBI regulations, and investment is allowed under the automatic route, subject to certain condi

Repatriation of funds in India is permitted after payment of applicable taxes and compliance with RBI/FEMA guidelines.

• Investments made through NRE accounts (and FCNR) are fully repatriable.
• For NRO accounts, repatriation is allowed up to USD 1 million per financial year.
• Dividends, interest, and capital gains (where permitted) can be remitted abroad after tax deduction.
• For foreign companies and investors, profits and capital can be repatriated via authorized dealer banks as per RBI regulations, provided all taxes are paid.

FDI limits (“sectoral caps”) vary by sector in India

• 100% FDI: Most manufacturing, IT, pharma, single-brand retail, etc.
• 74% (automatic): Private banking, insurance.
• 49% (automatic): Telecom, civil aviation, defense (beyond this, government route applies).
• 26% / 20% / 51%: Print media/news, public sector banking, multi-brand retail (government route).

Several sectors are subject to special conditions or approval (see DPIIT and RBI for the sectoral list).

Key exit mechanisms in India include:

• Sale of shares/securities in the secondary market (stock exchange)
• Buyback or capital reduction/redemption by the company (as per Companies Act/RBI rules)
• Strategic sale to other investors, including private equity or acquiring companies
• IPO offering for publicly listed companies
• Repatriation of capital and profit, subject to taxes and regulatory compliance.

The top FDI sub-sectors in India (as of FY 2024–25) are

• Services sector (finance, banking, insurance, outsourcing, business services)
• Computer software and hardware
• Trading
• Telecommunications
• Construction and infrastructure
• Drugs and pharmaceuticals
• Chemicals (excluding fertilizers)
• Non-conventional energy

• Foreign Portfolio Investors (FPIs) have two main investment limits in Indian companies: they cannot hold more than 10% of a company's issued capital individually or as an investor group, and their collective investment is capped at 24% of a company's total paid-up equity capital, though this 24% can be increased to the sectoral cap by a company's Board.
• For Debt securities: Limits are 6% of outstanding government securities, 2% for state development loans, and 15% for corporate bonds (subject to changes by RBI)
• For Debt instruments limits check the investment limits pasted in next field.

India has climbed global Ease of Doing Business rankings due to reforms, digitization, and regulatory simplification. Government incentives for manufacturing, supply chain improvements, and startup ecosystem are favourable, though some regulatory complexity and bureaucracy persist.

There is no separate FEMA restriction on the revenue model of a company just because it has FDI. Companies can use various revenue models like manufacturing, trading (wholesale/retail per FDI policy), services, export-oriented, technology/IP-based, subject to compliance with sectoral regulations.

FDI cannot be used for revenue models involving prohibited sectors (lottery, gambling, chit funds, Nidhi companies, real estate trading, tobacco manufacturing, etc.).

FDI cannot be used for revenue models involving prohibited sectors (lottery, gambling, chit funds, Nidhi companies, real estate trading, tobacco manufacturing, etc.).

Capital Gains Tax

• Short-term (held <12 months) on listed securities: 15% plus surcharge and cess.
• Long-term (held ≥12 months) on listed securities: 10% plus surcharge and cess on gains exceeding ₹1,00,000 in a financial year.

Interest and Dividends

• Generally taxed at a flat rate of 20% for Non-Residents on income from investments, plus applicable surcharge and cess.

Treaties

• Double Taxation Avoidance Agreements (DTAA) may provide credits or exemptions, reducing double taxation on income earned in India.

• Electronics & Semiconductors
• Electric Vehicles and Automotive
• Pharmaceuticals & Life Sciences
• Renewable Energy (Solar, Wind)
• Textiles & Garments
• Consumer Durables
• Chemicals & Petrochemicals
• Aerospace & Defence

• Labour is abundant, with unskilled and semi-skilled workers available across all states, often in tier 2/3 cities at lower cost.
• Skilled labor (IT, engineering, pharma) is concentrated around metros like Bengaluru, Pune, Hyderabad, Chennai.

• Mumbai and Delhi (NCR): Represent the highest absolute volume of international schools in India, often accounting for 15-20% of all authorized institutions nationally. They possess the longest-established institutions (some with 30-50 year histories) and the greatest depth of selection.
• Bengaluru: Is characterized by a high density and specialization, featuring a strong concentration of schools tailored to the high-tech and international business communities, with a high prevalence of full IB curriculum adoption.
• Hyderabad: Shows the fastest rate of expansion in new international school offerings over the past decade. This growth is directly linked to the city's rapid development as a major tech and pharmaceutical hub, increasing the availability of options.

• Monthly cost for a single expat: Roughly ₹65,000–₹80,000 ($800–$1,000), including rent, utilities, groceries, dining, and transport in most metros.
• Family of four: Typically between ₹140,000–₹180,000 ($1,800–$2,200) per month, varying with city, schooling, and housing choices.
• Major monthly costs: Mumbai has the highest rents (1-bedroom city center: ₹44,000+), followed by Bengaluru, Delhi, and Hyderabad. Daily essentials, domestic help, and meals are affordable by global standards.

• Mumbai exhibits the highest cost profile, featuring the highest average residential rental rates and general cost of living, but it provides the largest volume of long-established international schools and serves as the primary hub for finance and corporate headquarters.
• Bengaluru has moderately high costs but is the dominant hub for Global IT and Technology, offering a high availability of modern housing and a high concentration of specialized international schools.
• Delhi (NCR) offers a high volume of established schools and rents that are typically lower than prime Mumbai areas, but presents challenges with seasonal air quality and traffic.
• Hyderabad offers the lowest cost of living and most competitive residential rental rates among the four, while simultaneously demonstrating the fastest rate of expansion in new international school offerings, correlating with its rapid growth as a major tech and pharmaceutical center.

• Transportation: All cities have expanding metro networks, major airports, app-based cabs, and bus systems. Mumbai’s local rail is a lifeline, Delhi has India's most extensive metro, Bengaluru and Hyderabad are catching up rapidly.
• Energy: Stable, but with some supply gaps and higher rates for industry. Efficient in all four cities.
• Telecommunications: Excellent 4G/5G coverage, affordable broadband, and high smartphone penetration in all metros.
• Urban development: All four cities are seeing investment in roads, airports, industrial parks, and digital infrastructure, though congestion and pollution remain issues in Mumbai and Delhi.

• Mumbai: Finance, media, shipping, and luxury retail.
• Delhi-NCR: Government affairs, policy consulting, e-commerce, and tech.
• Bengaluru: Information technology, biotechnology, and research.
• Hyderabad: Life sciences, pharmaceuticals, IT, and aerospace.
• Chennai/Pune/Ahmedabad: Automotive, manufacturing, logistics.
• Many states offer incentives for priority sectors, e.g., EVs in Tamil Nadu, biotech in Telangana, renewable energy in Gujarat.

• Special Economic Zones (SEZs): Income tax holidays, reduced customs/GST.
• GIFT City (Gujarat International Finance-Tec City): 10-year tax holiday, no GST on offshore transactions, extended tax incentives for financial services, investment funds, and aircraft leasing.
• State-specific incentives: Various states (e.g., Tamil Nadu, Gujarat, Telangana) offer sector-specific production-linked incentives, land rebates, and subsidized utilities for manufacturing, IT, R&D, etc.
• New Budget Highlights (2025): Lower capital gains tax for REITs/InvITs (12.5%), presumptive tax facility for offshore tech providers, and extended tax relief for offshore investors using GIFT City as a base.