India’s data centre capacity is set to surge from approximately 1.5 GW in 2025 to over 6.5 GW by 2030, a more than fourfold increase driven by AI workloads, cloud migration, digital services expansion and data localisation requirements. Blackstone’s REIT raised $1.75 billion specifically for data centre acquisitions. Reliance and Adani have committed over $200 billion combined toward data centre and digital infrastructure. The government’s tax holiday until 2047 for foreign cloud companies using Indian data centres is the most aggressive fiscal incentive any country has offered for this sector. T&A Consulting helps foreign data centre operators, cloud companies and investors evaluate and enter the Indian data centre market.

Introduction: Why India, Why Now

The convergence of five structural forces is driving India’s emergence as a global data centre hub. First, India’s digital economy contributed 11.74% of GDP in FY 2022-23 and is projected to reach 20% of GVA by FY 2029-30, generating massive domestic demand for data storage and processing. Second, the Digital Personal Data Protection Act, 2023, and sectoral regulations from RBI, SEBI and IRDAI increasingly require that certain categories of data be stored and processed within India, creating a regulatory driver for onshore data centre capacity. Third, the explosive growth of AI workloads (training and inference) demands purpose-built GPU clusters and high-density computing facilities that the existing installed base cannot support. Fourth, India’s expanding network of submarine cables (now over 17 cable landing stations) provides the international connectivity required for a globally competitive hosting market. And fifth, the government has introduced the most aggressive fiscal incentives for data centres of any major economy.

Market Size and Growth Trajectory

India’s data centre market is currently valued at approximately $5.7 billion and is projected to grow to $12-15 billion by 2030. Capacity is concentrated in five primary markets: Mumbai (approximately 45% of installed capacity), Chennai (20%), Hyderabad (15%), Pune (10%) and Delhi-NCR (10%). Mumbai’s dominance reflects its position as India’s financial capital and the location of the country’s largest submarine cable landing stations.

New capacity is being added at an unprecedented pace. In 2025, GCCs accounted for 38% of office leasing across India’s top seven cities, and data centre operators are among the fastest-growing commercial real estate tenants. Blackstone’s REIT raised approximately Rs 16,782 crore ($1.75 billion) specifically to acquire data centres, signalling institutional investor confidence in the asset class. India’s government plans to invest over Rs 1,68,000 crore ($20 billion) in offshore energy mapping, partly to support the massive power requirements of next-generation data centres.

Policy and Incentive Framework

• Tax holiday until 2047 for foreign cloud companies. Budget 2026 announced a tax holiday for foreign cloud companies that use Indian data centres for export-oriented services. This is the most generous fiscal incentive globally for this sector, providing a multi-decade cost advantage over competing locations in Singapore, the Middle East and Southeast Asia.
• Infrastructure status. Data centres have been granted “infrastructure” status by the government, enabling access to long-term financing at lower interest rates, simplified land acquisition processes and other benefits typically reserved for physical infrastructure projects.
• State-level incentives. Maharashtra, Tamil Nadu, Telangana, Karnataka and Gujarat have all introduced data centre-specific policies offering capital subsidies, power tariff concessions, stamp duty waivers and expedited approvals. Maharashtra’s policy offers capital subsidies of up to Rs 100 crore for large facilities.
• SEZ and IFSC benefits. Data centres established in SEZs or GIFT City’s IFSC can benefit from additional tax holidays, duty-free imports of equipment and simplified customs procedures.
• Renewable energy alignment. India’s target of 500 GW non-fossil fuel energy capacity by 2030 provides a pathway for data centres to secure green power through renewable energy purchase agreements, addressing ESG concerns and reducing long-term energy costs.

Key Players and Investment Activity

• Indian conglomerates. Reliance-Jio ($110 billion for AI and digital infrastructure), Adani Group ($100 billion for data centre expansion from 2 GW to 5 GW), Airtel’s Nxtra (expanding to 400 MW by 2027) and the Hiranandani Group’s Yotta (operating India’s largest single-site data centre in Mumbai) are the dominant domestic players.
• Global hyperscalers. Microsoft ($17.5 billion), Google ($15 billion) and Amazon (multi-billion-dollar expansion) are all building or expanding cloud regions in India. Their investments anchor demand for third-party colocation and connectivity services.
• International operators. Equinix, Digital Realty, NTT, ST Telemedia Global Data Centres and CapitaLand are all operational or expanding in India. Equinix’s Mumbai facility and NTT’s multi-city presence demonstrate sustained international operator interest.
• Institutional investors. Blackstone’s $1.75 billion REIT acquisition, Brookfield’s investments and sovereign wealth fund interest (Singapore’s GIC, Abu Dhabi’s ADIA) indicate that data centres are emerging as a major institutional-grade asset class in India.

Challenges and Considerations

• Power availability and cost. Data centres are energy-intensive, and India’s power infrastructure is uneven across geographies. While renewable energy is increasingly available, grid reliability and power pricing vary significantly by state. Companies must secure dedicated power arrangements and evaluate the total cost of energy over the facility’s lifecycle.
• Land and real estate. Suitable land parcels in prime metro locations are increasingly scarce and expensive. Secondary cities (Pune, Navi Mumbai, Hosur near Chennai) are emerging as alternatives for large-scale facilities.
• Cooling infrastructure. India’s tropical climate creates higher cooling costs compared to Nordic or temperate locations. Advanced cooling technologies (liquid cooling, adiabatic systems) are essential for AI-grade facilities.
• Connectivity. While submarine cable landing stations are concentrated in Mumbai and Chennai, new cable systems (including India-Europe cable routes and Pacific connectivity) are being planned. Companies evaluating non-metro locations must assess latency and connectivity requirements.
• Regulatory compliance. Data protection, localisation requirements and sectoral regulations (RBI for financial data, SEBI for market data, IRDAI for insurance data) create compliance obligations that operators must address in facility design and operations.

How T&A Consulting Supports Data Centre Market Entry

T&A Consulting provides comprehensive advisory for foreign data centre operators, cloud companies and investors entering the Indian market:

• Market assessment and feasibility studies. We evaluate the India data centre opportunity for specific operator profiles, including demand analysis, competitive landscape, site assessment and financial modelling.
• Site selection and state-level incentive navigation. We identify optimal locations based on power availability, connectivity, land costs and state incentive packages, and manage the incentive application process.
• Entity setup and regulatory compliance. We manage company incorporation, infrastructure licensing, environmental clearances and ongoing compliance for data centre operations.
• Investment facilitation. We support institutional investors evaluating data centre assets in India, providing market intelligence, deal flow identification and due diligence support.
• Partnership identification. We facilitate partnerships between international operators and Indian developers, power providers and enterprise customers.

Contact us at: pnijhawan@taglobalgroup.com to explore data centre opportunities in India.

Sources & references:
TechCrunch, ERP Today, JLL India, PIB, IndiaIPO

In the span of twelve months, India has concluded or operationalised trade agreements with the European Union, the United Kingdom, the European Free Trade Association and the United States, while maintaining existing agreements with ASEAN, Japan, South Korea and several other partners. This expanding web of preferential trade arrangements is transforming India’s position in global value chains and creating new multi-market strategies for companies that understand the architecture. T&A Consulting helps businesses, investment promotion agencies and governments navigate India’s trade agreement landscape and identify cross-agreement opportunities.

Introduction: A Structural Shift in India’s Trade Strategy

For decades, India was cautious about free trade agreements. Concerns about domestic industry protection, agricultural sensitivities and the perceived imbalance of existing agreements (particularly with ASEAN) made policymakers reluctant to pursue ambitious trade liberalisation. That approach has fundamentally changed. Between October 2025 and February 2026, India operationalised or concluded four major trade agreements with some of the world’s wealthiest economies, creating a preferential trade network that covers a significant share of global GDP.

The strategic logic is clear. India is positioning itself as a manufacturing and services hub with preferential access to multiple major markets simultaneously. A company operating from India can now potentially access preferential terms in the EU (25% of global GDP), the UK, EFTA nations, ASEAN, Japan, South Korea, the UAE and other partner countries. This multi-jurisdictional access, combined with India’s domestic market of 1.45 billion consumers, competitive manufacturing costs, large talent pool and expanding digital infrastructure, creates a compelling proposition for global companies seeking a “China plus one” or multi-hub operating model.

The Agreement Landscape: A Summary

• India-EU FTA (concluded January 2026, entry into force expected early 2027). The world’s largest free trade zone: 2 billion people, 25% of global GDP. Eliminates tariffs on 96.6% of EU goods exports. Car tariffs cut from 110% to 10% over 5 years. Services liberalisation across financial services, IT, professional services. €4 billion annual savings for EU exporters. CBAM provisions with €590 million transition support.
• India-UK CETA (signed July 2025). Duty-free access on 99% of India’s exports. Market access across 137 UK service sub-sectors. Double Contribution Convention for social security. Professional mobility provisions. Education services coverage supporting university campus expansion.
• India-EFTA TEPA (in force from October 2025). $100 billion FDI commitment over 15 years from Switzerland, Norway, Iceland and Liechtenstein. Immediate investment from Roche (1.5 billion CHF). Pharmaceutical, financial services and precision engineering focus.
• US-India Interim Trade Framework (February 2026). Effective tariff reduced from 50% to 18% (further reduced to 10% post-SCOTUS). Zero tariffs on gems, pharma, smartphones, handicrafts. Ongoing comprehensive BTA negotiations. Energy and geopolitical commitments.
• Existing agreements. ASEAN-India FTA (in force since 2010, covering goods and services with 10 ASEAN nations). India-Japan CEPA (2011). India-South Korea CEPA (2010). India-UAE CEPA (2022, with over $84 billion bilateral trade). India-Australia ECTA (2023). India-Mauritius CECPA (2021). India-New Zealand agreement ($20 billion FDI commitment, implementation from 2026).

Cross-Agreement Strategy: How Companies Should Think

The real strategic value is not in any single agreement but in the network effect. A foreign company can now structure operations to leverage multiple agreements simultaneously. Consider the following scenarios:

• European manufacturer. Establish manufacturing in India under PLI schemes. Export to the EU under the India-EU FTA (near-zero tariffs on most goods). Export to the UK under the India-UK CETA (99% duty-free). Export to ASEAN under the India-ASEAN FTA. Serve the Indian domestic market directly. One manufacturing base, four market corridors.
• Swiss pharmaceutical company. Leverage the India-EFTA TEPA for investment facilitation. Set up R&D and manufacturing under the pharma PLI scheme. Export generics to the EU under zero-tariff provisions. Export to the US under zero reciprocal tariffs for pharmaceuticals. Access India’s healthcare market directly.
• UK professional services firm. Leverage the India-UK CETA’s 137 service sub-sectors for market entry. Use the mobility provisions (Double Contribution Convention) to deploy professionals. Establish a GCC in India for service delivery. Serve EU clients through India-EU FTA services provisions. Global delivery from India to multiple markets.
• Japanese auto component company. Leverage the India-Japan CEPA for existing bilateral trade. Expand manufacturing under the automotive PLI scheme. Export to the EU under the India-EU FTA (tariff elimination on auto components). Supply UK OEMs under the India-UK CETA. Multi-market export platform from India.

What This Means for Investment Promotion Agencies

• Reframe India’s value proposition. India is no longer just a large domestic market or a low-cost production base. It is a multi-market access hub with preferential trade terms across the world’s largest economies. IPAs should lead with this positioning.
• Develop sector-specific, cross-agreement playbooks. For each priority sector (automotive, pharmaceuticals, textiles, IT services, food processing), map the tariff benefits, market access provisions and mobility arrangements across all relevant agreements.
• Target companies already in India for expansion. Companies with existing India operations may not be aware of the new cross-agreement opportunities. IPAs should proactively advise existing investors on how to leverage new agreements.
• Coordinate across bilateral relationships. India’s trade agreements interact and sometimes overlap. IPAs should develop expertise in the full agreement architecture, not just bilateral relationships.

Risks and Considerations

India’s expanding trade agreement network also creates complexities. Rules of origin vary across agreements, meaning companies must carefully manage sourcing and production to qualify for preferential tariffs. The India-EU FTA’s CBAM provisions impose carbon costs that other agreements do not. Some agreements (US-India) remain interim and could change. The domestic political dynamics around agricultural market opening, dairy imports and automotive competition will continue to influence implementation.

Companies and advisors should also track the investment protection landscape carefully. India has terminated over 70 bilateral investment treaties since 2015 and has avoided ISDS mechanisms in recent agreements (EFTA, and likely EU). The absence of traditional investment arbitration protections is a material consideration for companies making large, long-term capital commitments.

How T&A Consulting Supports Trade Strategy

T&A Consulting provides comprehensive trade agreement advisory across India’s entire FTA network:

• Multi-agreement opportunity mapping. We identify and quantify cross-agreement opportunities for specific companies, sectors and supply chains.
• Rules of origin advisory. We help companies structure sourcing and production to qualify for preferential tariffs across multiple agreements.
• Market entry strategy. We design India entry strategies that leverage the full trade agreement architecture for multi-market access.
• IPA and EDA advisory. We help investment promotion organisations develop trade agreement-integrated investment attraction strategies.
• Ongoing monitoring. We track ratification timelines, implementation developments and negotiation progress across all agreements, providing timely updates to our clients.

Contact us at: pnijhawan@taglobalgroup.com to explore how India’s trade agreement network creates opportunities for your organisation.

Sources & references:
European Commission, Ministry of Commerce, Government of India, India Briefing, PIB, World Economic Forum

India is positioning itself as a global hub for artificial intelligence infrastructure, with over $250 billion in commitments announced at the India AI Impact Summit 2026. Microsoft has committed $17.5 billion, Google $15 billion, Reliance-Jio $110 billion over seven years and Adani Group $100 billion for data centre and AI compute expansion. The government has announced tax holidays until 2047 for foreign cloud companies using Indian data centres, a Rs 100 billion venture programme for deep-tech startups and plans to add 20,000 GPUs through the IndiaAI Compute initiative. T&A Consulting helps foreign technology companies, investors and economic development agencies understand India’s emerging AI infrastructure landscape and identify investment and partnership opportunities.

Introduction: AI Infrastructure as Industrial Policy

The India AI Impact Summit 2026, held in New Delhi in February, was the fourth in a series of global AI gatherings and the first hosted by a Global South nation. The summit’s dominant theme was clear: AI infrastructure is no longer discretionary technology spending. It is industrial policy. The scale and coordination of capital commitments signal that compute capacity is being embedded into national economic strategy alongside manufacturing, energy and transportation.

India’s pitch is built on a compelling combination: the world’s largest pool of STEM talent (2.5 million graduates annually), competitive energy and labour costs, a 5.2 million new developer surge in a single year (making India the largest source of new developers globally), and a government willing to deploy significant fiscal incentives to attract AI investment. The Indian AI industry is expected to exceed $7 billion by the end of 2026 and cross $35 billion by 2032, with data centre capacity projected to surge from approximately 1.5 GW in 2025 to over 6.5 GW by 2030.

The Investment Landscape: Who Is Committing What

• Reliance Industries and Jio. The largest single commitment: a multi-gigawatt AI data centre and edge compute expansion programme backed by $110 billion over seven years. This includes AI-optimised facilities, national GPU scaling initiatives and integration with Jio’s existing 5G and fibre infrastructure.
• Adani Group. Plans to invest approximately $100 billion to expand its data centre platform from roughly 2 GW to 5 GW, positioning the additional capacity for AI-ready workloads.
• Microsoft. Reiterated its previously announced $17.5 billion commitment to expand cloud and AI infrastructure in India, part of a broader $50 billion Global South investment plan through 2030. More than 40% of Microsoft’s global R&D workforce is already based in India.
• Google. Confirmed $15 billion for an AI hub in India, focused on cloud regions, AI data infrastructure and multilingual model development.
• Amazon. Reaffirmed its multibillion-dollar India expansion roadmap for AWS cloud regions and AI computing infrastructure.
• Blackstone. Acquired a major stake in AI infrastructure startup Neysa, and its REIT raised approximately Rs 16,782 crore ($1.75 billion) to acquire data centres, targeting the growing demand for digital infrastructure and high-speed data processing.

Government Policy Architecture

India’s AI infrastructure push is supported by a coordinated policy framework:

• IndiaAI Mission 2.0. The government’s flagship AI programme, with Union Budget 2026-27 allocating Rs 1,000 crore to support AI startups, cloud infrastructure and domestic technology providers. The mission aims to expand shared GPU access beyond 100,000 units through the IndiaAI Compute initiative, including an immediate addition of 20,000 GPUs.
• Tax holiday until 2047. Budget 2026 announced a tax holiday until 2047 for foreign cloud companies using Indian data centres, positioning India as a globally competitive hosting destination for AI workloads. This single measure could redirect significant AI infrastructure investment that would otherwise go to Singapore, the Middle East or Southeast Asia.
• ISM 2.0 (India Semiconductor Mission). The government has sharpened its focus on high-value segments of the chip value chain, including equipment, materials and full-stack Indian IP. The Electronic Component Scheme outlay has been increased to Rs 40,000 crore.
• Deep-tech startup support. A Rs 100 billion government-backed venture programme targets high-risk areas including AI and advanced manufacturing. The eligibility period for deep-tech companies to qualify as startups has been extended to 20 years, with the revenue threshold raised to Rs 3 billion.
• MANAV governance framework. India’s responsible AI governance framework, along with the New Delhi Frontier AI Commitments, positions India as a jurisdiction that combines investment incentives with regulatory guardrails.

Data Centre Capacity: The Physical Layer

AI workloads are compute-intensive and require massive data centre infrastructure. India’s data centre capacity is currently approximately 1.5 GW, concentrated in Mumbai, Chennai, Hyderabad, Pune and Delhi-NCR. By 2030, this is projected to surge to over 6.5 GW, a more than fourfold increase driven by demand from AI training and inference, cloud migration, digital services and regulatory requirements for data localisation.

Global data centre operators (Equinix, Digital Realty, NTT, ST Telemedia) and Indian players (Nxtra by Airtel, Yotta, CtrlS) are all expanding capacity. The convergence of AI demand, favourable tax policy and India’s growing domestic digital economy makes data centre investment one of the most attractive infrastructure plays in the country.

For foreign investors and operators, the key considerations are: power availability and cost (data centres are energy-intensive), land availability in key metros, cooling infrastructure in India’s tropical climate, connectivity to submarine cable landing stations and regulatory compliance with India’s data protection and localisation requirements.

Opportunities for Foreign Companies

• AI infrastructure providers. Companies specialising in GPU clusters, AI-optimised servers, cooling systems, power management and data centre design will find a rapidly expanding market.
• Cloud and SaaS companies. The tax holiday until 2047 for foreign cloud companies using Indian data centres creates a unique opportunity to establish India operations with a long-term fiscal advantage.
• Semiconductor and chip design. Over 50 GCCs already have dedicated semiconductor design units in India. Companies in the fabless semiconductor value chain can leverage India’s talent and incentive framework.
• AI application companies. Healthcare, agriculture, financial services, education and urban administration are all identified as priority sectors for AI application. Foreign AI companies with proven solutions in these verticals have a natural market.
• System integrators. The deployment of AI at enterprise scale requires system integration expertise. Companies that control enterprise transformation roadmaps hold significant operational leverage in India’s AI adoption cycle.

How T&A Consulting Supports AI Infrastructure Strategy

T&A Consulting helps foreign technology companies and investors navigate India’s AI and data infrastructure landscape:

• Market assessment. We evaluate the India opportunity for specific AI infrastructure segments, including market sizing, competitive analysis and demand forecasting.
• Investment facilitation. We support data centre operators, cloud companies and AI infrastructure providers in identifying sites, securing incentives and setting up operations in India.
• Policy and incentive navigation. We guide companies through the available incentive frameworks, including the data centre tax holiday, ISM 2.0, PLI schemes and state-level policies.
• Partnership identification. We facilitate partnerships between foreign AI companies and Indian enterprises, GCCs and research institutions.
• Regulatory compliance. We advise on data protection, localisation requirements and IRDAI/SEBI/RBI compliance for AI applications in regulated sectors.

Contact us at: pnijhawan@taglobalgroup.com to explore AI infrastructure opportunities in India.

Sources & references:
TechCrunch, ERP Today, Teji Mandi, PIB, Tracxn

On 1 June 2026, SEBI’s SWAGAT-FI framework goes live, creating a single-window, automated registration and compliance system for trusted foreign investors in India. The framework, formally titled “Single Window Automatic and Generalised Access for Trusted Foreign Investors,” enables sovereign wealth funds, pension funds, central banks, regulated insurance companies and broad-based mutual funds to register as both FPIs and FVCIs through a single application, with operational approval within 48 hours and a 10-year compliance cycle. For economic development agencies, investment promotion organisations and foreign institutional investors, SWAGAT-FI represents the most significant simplification of India’s foreign investment framework in over a decade. T&A Consulting helps foreign investors and advisory organisations understand and leverage the new framework.

Introduction: Why SWAGAT-FI Matters

India has 11,913 registered Foreign Portfolio Investors (FPIs) as of June 2025, holding assets worth Rs 80.83 lakh crore (approximately $960 billion). SWAGAT-FI-eligible investors are estimated to contribute more than 70% of total FPI assets under custody. Despite this scale, India’s foreign investment framework has historically been criticised for procedural complexity: multiple registration processes across FPI and FVCI routes, repeated KYC and compliance documentation, short renewal cycles and fragmented regulatory interfaces.

SWAGAT-FI addresses these pain points comprehensively. By creating a unified registration mechanism, extending compliance timelines and reducing documentation requirements, it removes structural frictions that have made India less competitive than Singapore, Hong Kong and Dubai for institutional capital deployment. The framework does not change the substantive investment regulations — sectoral caps, ownership restrictions and FEMA compliance requirements remain — but it dramatically simplifies the administrative process of getting in and staying compliant.

Who Qualifies as a SWAGAT-FI Investor

SEBI has defined a specific class of “trusted” foreign investors based on their regulatory status, governance standards and risk profile:

• Government-owned investment vehicles including sovereign wealth funds and central bank reserve management entities.
• Pension funds regulated by their home jurisdiction’s prudential authority.
• Insurance companies regulated by globally recognised insurance supervisory authorities.
• Broad-based regulated public retail funds including mutual funds and exchange-traded funds registered and regulated in their home jurisdiction.
• Multilateral financial institutions such as IFC, ADB and EBRD.
• University endowments and charitable foundations meeting defined governance and regulatory criteria.

The common thread is that these entities are already subject to rigorous regulation, governance and disclosure requirements in their home jurisdictions. SEBI’s rationale is that requiring them to undergo the same level of scrutiny as less-regulated entities creates unnecessary friction without meaningful risk reduction.

Key Features of the Framework

• Unified registration. SWAGAT-FI-eligible investors can register simultaneously as both FPIs and FVCIs through a single application. This means a sovereign wealth fund can invest in listed equity (as an FPI) and unlisted startups (as an FVCI) without separate registration processes. Previously, dual registration required independent applications with separate documentation, compliance officers and fee payments.
• 48-hour operational approval. Eligible investors can obtain operational approval within 48 hours of application, compared to the weeks or months that standard registration can take.
• 10-year compliance cycle. Registration validity, KYC reviews and fee payments have been extended to a 10-year cycle, replacing the previous 3 to 5-year renewal requirements. This alone significantly reduces the administrative burden on large institutional investors managing India allocations.
• 100% NRI/OCI corpus contribution. SWAGAT-FI-eligible FPIs can have up to 100% of their corpus contributed by NRIs, Indian residents and Overseas Citizens of India, compared to the standard limit of 50% for other FPIs. This is particularly relevant for diaspora-focused investment vehicles.
• IFSC integration. The framework expands eligibility for FPI registration in International Financial Services Centres (IFSCs like GIFT City). Retail investment schemes managed by resident Indians operating from IFSCs can now register as FPIs, broadening the range of GIFT City-based vehicles that can access Indian markets.
• Reduced documentation. Eligible investors are exempt from certain procedural requirements that apply to standard registrations, including some documentation, disclosure and review obligations.

Strategic Implications for Foreign Investors

SWAGAT-FI changes the cost-benefit analysis for institutional investors considering India allocations. The reduction in compliance overhead, the 10-year renewal cycle and the unified registration make it significantly cheaper and faster to establish and maintain an India investment capability. For large institutional investors that manage allocations across dozens of markets, the administrative simplification is material.

The dual FPI-FVCI registration is particularly significant. India’s startup ecosystem has produced over 100 unicorns, and venture capital investment in Indian startups totalled over $10 billion in 2025. Institutional investors that previously accessed India only through listed markets can now build diversified portfolios spanning public equities, debt, venture capital and private equity through a single registration, managing their entire India exposure through one compliance framework.

The framework also interacts with other recent reforms, including the 100% FDI opening in insurance, the India-EU FTA provisions on financial services and the relaxation of Press Note 3 beneficial ownership thresholds. Together, these create a significantly more accessible investment environment for institutional capital.

Implications for Economic Development Agencies and IPAs

• Update investor advisory materials. EDAs and IPAs advising foreign investors on India should update their guidance to reflect SWAGAT-FI eligibility, benefits and application procedures.
• Re-engage institutional investors. Sovereign wealth funds, pension funds and insurance companies that previously cited compliance complexity as a barrier to India investment should be re-engaged with the simplified framework.
• Position India alongside competitor markets. SWAGAT-FI brings India’s institutional investor framework closer to the standards offered by Singapore, Hong Kong and Dubai. IPAs should incorporate this positioning into their investment attraction narratives.
• Leverage GIFT City integration. The expanded IFSC eligibility creates opportunities for GIFT City-based funds and vehicles to access Indian markets more efficiently.

How T&A Consulting Supports SWAGAT-FI Navigation

T&A Consulting provides advisory services for foreign institutional investors and organisations navigating India’s capital market access framework:

• Eligibility assessment. We determine whether an investor qualifies for SWAGAT-FI status and advise on the registration process.
• Registration facilitation. We manage the application process, including documentation preparation, liaison with designated depository participants and regulatory coordination.
• Investment strategy advisory. We advise on India allocation strategies, covering listed equity, debt, venture capital and private equity opportunities.
• Ongoing compliance support. We provide ongoing support for FEMA compliance, SEBI reporting and regulatory updates throughout the 10-year registration cycle.
• IPA and EDA advisory. We help investment promotion organisations incorporate SWAGAT-FI into their investor facilitation services and investment attraction campaigns.

Contact us at: pnijhawan@taglobalgroup.com to understand how SWAGAT-FI affects your India investment strategy.

Sources & references:
SEBI, Maheshwari & Co, Lawrbit, CA Alley, Elite Wealth

On 27 January 2026, India and the European Union concluded the largest free trade agreement either side has ever signed, creating a free trade zone covering two billion people and approximately 25% of global GDP. Dubbed the “mother of all deals” by European Commission President Ursula von der Leyen, the India-EU FTA is expected to eliminate tariffs on 96.6% of EU goods exports and open market access across services, digital trade, intellectual property and government procurement. With entry into force anticipated in early 2027, businesses on both sides must begin preparing now. T&A Consulting helps companies, economic development agencies and governments navigate the India-EU FTA and position for the opportunities it creates.

Introduction: 19 Years in the Making

India and the EU first attempted to negotiate a free trade agreement in 2007 under the Broad-based Trade and Investment Agreement (BTIA) framework. Talks collapsed in 2013 over deep disagreements on tariffs, intellectual property rights, data security and the right of Indian professionals to work in Europe. Negotiations were relaunched in 2022, and after 14 rounds of intensive talks, the agreement was concluded at the 16th India-EU Summit at Hyderabad House, New Delhi.

The geopolitical context was decisive. Both India and the EU were seeking to diversify their trade relationships amid tensions with the United States and the need to reduce dependence on Chinese supply chains. The US imposition of tariffs on both Indian and European goods in 2025 created additional urgency for both sides to conclude the deal. The FTA was signed just days before the US-India interim trade agreement was announced, suggesting a deliberate sequencing to maximise negotiating leverage.

The agreement covers 20 negotiating chapters spanning goods, services, digital trade, intellectual property, government procurement, sustainable development, competition and trade remedies. It represents the most comprehensive trade agreement India has ever concluded, surpassing even the India-UK CETA in scope and ambition.

Key Provisions: What the Agreement Delivers

Tariffs and goods market access. Tariffs on 96.6% of EU goods exports to India will be eliminated or reduced, expected to save EU exporters up to €4 billion per year in duties. India will gradually open markets across key industrial categories including automotive, wines and spirits, machinery, chemicals and agricultural products. The EU has agreed to eliminate or reduce tariffs on approximately 90% of Indian goods exports, covering textiles, leather, gems and jewellery, engineering goods and agricultural products.

Automotive. India has agreed to cut car tariffs from as much as 110% to 10% over five years, with quota-based access for 250,000 EU vehicles annually. This is a landmark concession, positioning European carmakers (Volkswagen, BMW, Mercedes-Benz, Stellantis) to significantly expand their India operations.

Services. Trade in services between the EU and India amounted to €59.8 billion in 2024, with EU exports of €26 billion and imports of €33.8 billion. The agreement expands opportunities across financial services, telecommunications, professional services, IT/ITeS and business services, ensuring a more stable and predictable trade environment.

Digital trade. The FTA includes a dedicated digital trade chapter covering electronic signatures, electronic contracts, paperless trading, consumer protection in e-commerce, open government data and cooperation on emerging technologies including artificial intelligence.

Government procurement. Both sides have opened government procurement markets to each other’s companies, subject to defined thresholds and sector exclusions. This gives EU companies access to India’s large public infrastructure and technology spending, and Indian companies access to EU public procurement.

Geographical indications (GIs). The agreement includes protections for European GIs (such as Champagne, Parma Ham, Feta) and Indian GIs (such as Darjeeling tea, Basmati rice), though a separate GI agreement is still under parallel negotiation.

The Carbon Border Challenge: CBAM and India

One of the most significant complications in the agreement is the EU’s Carbon Border Adjustment Mechanism (CBAM), which imposes carbon costs on imports of steel, aluminium, cement, fertilisers, electricity and hydrogen from countries without equivalent carbon pricing. India has objected to CBAM as a unilateral trade barrier, but the EU has kept it intact within the FTA framework.

To mitigate the impact, the EU has pledged €590 million to help India reduce emissions in steel and aluminium production, the sectors most exposed to CBAM costs. Indian steel and aluminium exporters will face new carbon costs from 2026, and companies must begin measuring, reporting and managing their carbon emissions to maintain competitiveness in the EU market.

For foreign companies and IPAs, CBAM creates both a challenge and an opportunity. Companies that invest in low-carbon manufacturing in India, leveraging the country’s growing renewable energy capacity and PLI schemes for clean technology, will gain a competitive advantage as CBAM costs bite for higher-emission competitors.

Ratification Timeline and Implementation

The agreement is concluded but not yet in force. The ratification timeline is as follows:

• EU side. The agreement texts will undergo legal revision and translation into all official EU languages. The European Commission will then propose the agreement to the Council of the European Union (requiring qualified majority vote) and the European Parliament (requiring consent). EU legal scrutiny is expected to conclude by July 2026, with full ratification anticipated by early 2027.
• India side. India’s domestic ratification does not require parliamentary approval, as trade agreements fall under executive competence. The Union Council of Ministers will approve the agreement. India’s ratification process is expected to be faster than the EU’s multi-step process.
• Provisional application. Depending on the EU’s internal procedures, certain provisions may be provisionally applied before full ratification, allowing businesses to begin benefiting from tariff reductions earlier.

The investment protection agreement and the GI agreement are being negotiated on parallel tracks and may be concluded separately. The investment protection agreement is particularly complex given India’s history of terminating over 70 bilateral investment treaties in 2015 following a wave of investor-state claims.

Sectoral Impact and Opportunities

• Automotive. European carmakers gain meaningful market access for the first time. Indian auto component manufacturers gain improved access to EU supply chains. JV and partnership opportunities will accelerate.
• Textiles and leather. Indian textile exports to the EU, already substantial, will benefit from tariff elimination. This positions India more competitively against Bangladesh, Vietnam and Turkey for EU-bound garment and fabric production.
• Pharmaceuticals. Indian generic drugs gain improved market access, while European pharmaceutical companies benefit from enhanced IP protections and regulatory cooperation.
• IT and professional services. The services chapter creates new routes for Indian IT companies into EU markets and for European professional services firms into India.
• Agriculture and food processing. European wines, spirits, dairy and processed food gain improved access to India’s vast consumer market. Indian agricultural products (rice, spices, tea, marine products) gain tariff benefits in the EU.
• Clean technology. The combination of EU climate expertise, India’s renewable energy targets and CBAM transition support creates a significant green investment corridor.

How T&A Consulting Supports India-EU Trade

T&A Consulting provides comprehensive advisory for companies and organisations operating within the India-EU FTA framework:

• Trade agreement impact assessment. We quantify tariff savings, market access improvements and competitive positioning implications for specific products, sectors and supply chains.
• Market entry strategy. We design India entry strategies for European companies and EU entry strategies for Indian companies, incorporating FTA provisions and regulatory requirements.
• CBAM advisory. We help Indian exporters understand and prepare for CBAM requirements, including carbon measurement, reporting and transition strategies.
• Investment attraction. We support EDAs and IPAs in designing FTA-aligned investment promotion campaigns targeting companies on both sides.
• Partnership facilitation. We identify and introduce potential partners across India and the EU, facilitating JVs, distribution agreements and technology partnerships.

Contact us at: pnijhawan@taglobalgroup.com to discuss how the India-EU FTA creates opportunities for your organisation.

Sources & references:
European Commission, World Economic Forum, Clyde & Co, IBEF, European Parliament

India’s outbound tourism market is projected to grow from $23.4 billion in 2026 to $68.8 billion by 2036, expanding at an 11.4% CAGR. Outbound trips are expected to increase fivefold by 2040. With rising disposable incomes, wider passport penetration, improved air connectivity and a growing appetite for experiential travel, Indian travellers are reshaping global tourism demand. T&A Consulting helps national tourism organisations, destination marketing agencies and hospitality businesses design strategies to capture the Indian outbound travel market.

Introduction: The Scale of the Indian Outbound Opportunity

India is now among the world’s top five countries for outbound tourism. Indian overseas travel data shows leisure travel making up 42.52% of foreign departures in 2024, underscoring a fundamental shift from business and VFR (visiting friends and relatives) travel toward leisure-driven exploration. The market is being fuelled by structural factors: India’s median age is 28, the middle class is expanding rapidly, and first-time international travellers are emerging from Tier-2 and Tier-3 cities at unprecedented rates.

Budget 2026 supported this trajectory by rationalising the Tax Collected at Source (TCS) on overseas tour packages, reducing the upfront liquidity burden on Indian travellers. Combined with expanding visa-free and visa-on-arrival agreements (India now enjoys simplified entry to over 60 destinations), the structural barriers to outbound travel are lower than ever.

Who Is the Indian Outbound Traveller in 2026?

The Indian outbound market is not monolithic. Understanding the distinct traveller segments is critical for destination marketing:

• Affluent urban professionals (25-45). The primary driver of leisure outbound travel. They seek experiential, Instagram-worthy destinations, premium dining, adventure activities and cultural immersion. They research extensively online, book through OTAs and are influenced by social media and peer recommendations.
• Family travellers. Multi-generational family trips remain a dominant travel pattern. Destinations that offer child-friendly infrastructure, vegetarian food options, safety and visa simplicity perform well. Southeast Asia (Thailand, Malaysia, Singapore, Bali) and the Middle East (Dubai, Abu Dhabi) dominate this segment.
• First-time international travellers from Tier-2/3 cities. The fastest-growing segment. These travellers are price-sensitive, prefer group tours and short-haul destinations, and often rely on vernacular-language content and local travel agents. Destinations that invest in Hindi and regional language marketing will capture this cohort.
• Wellness and spiritual travellers. A growing niche seeking yoga retreats, Ayurvedic spas, pilgrimage circuits and health-focused holidays. Destinations like Bhutan, Sri Lanka, Bali and parts of Europe are attracting this segment.
• Solo travellers and digital nomads. A rapidly emerging segment, particularly among young professionals. They seek flexible itineraries, co-working spaces, digital connectivity and cultural authenticity.
• MICE (Meetings, Incentives, Conferences, Exhibitions). India’s corporate sector is a significant source of MICE travel. The government’s “Meet in India” initiative has boosted domestic MICE, but Indian corporates also organise large-scale incentive trips and conferences abroad.

Key Trends Shaping Indian Outbound Travel

• Experiential over aspirational. Indian travellers are moving beyond “see the landmark” tourism toward immersive experiences: cooking classes in Tuscany, Northern Lights excursions in Norway, wine trails in South Africa and cultural workshops in Japan.
• Sustainable and responsible tourism. Environmental consciousness is growing, especially among younger travellers who prefer eco-conscious choices, community-based stays and destinations with strong sustainability credentials.
• Cruise holidays. Cruise tourism from India is growing rapidly, with major operators expanding routes from Mumbai, Goa and Chennai. Mediterranean, Southeast Asian and Middle Eastern cruise itineraries are particularly popular.
• Digital-first booking. The increasing penetration of online travel aggregators (OTAs) and AI-driven itinerary planning tools is streamlining bookings. Multi-lingual support and vernacular content are expanding reach in non-metro cities.
• New destinations gaining share. While traditional favourites (Dubai, Singapore, Thailand, Europe) remain dominant, destinations in Central Asia (Georgia, Azerbaijan, Uzbekistan), Eastern Europe (Poland, Hungary, Croatia) and South America are gaining traction among adventurous Indian travellers.
• Flexible payment and travel financing. Travel financing options, EMI-based bookings and BNPL (Buy Now Pay Later) models are lowering the cost barrier for international travel, particularly for Tier-2 city travellers.

What Destination Marketing Organisations Should Do

For national tourism boards and destination marketing organisations (DMOs) targeting Indian travellers, the following strategies are essential:

• Invest in digital and social media marketing. Indian travellers research extensively on Instagram, YouTube, Google and travel review platforms before booking. Influencer partnerships, short-form video content and user-generated content campaigns are highly effective.
• Localise content and services. Destinations that offer Hindi and regional language marketing materials, vegetarian food options, Indian payment acceptance (UPI is now live in 8 countries) and culturally sensitive hospitality will outperform those that don’t.
• Simplify visa processes. Visa complexity remains a significant deterrent. Destinations offering visa-free entry, e-visas or visa-on-arrival consistently attract more Indian travellers.
• Target Tier-2 and Tier-3 cities. The next wave of Indian outbound growth will come from cities like Jaipur, Lucknow, Kochi, Indore and Chandigarh. DMOs should establish presence at regional travel expos, partner with local travel agents and invest in vernacular digital content.
• Develop India-specific packages. Curated packages that address Indian traveller preferences — vegetarian dining, family-friendly accommodations, shopping opportunities, flexible itineraries — perform significantly better than generic offerings.
• Leverage Bollywood and cricket. Film tourism (destinations featured in Bollywood movies) and cricket-linked travel (IPL team travel, ICC tournament tourism) are powerful demand drivers in the Indian market.

How T&A Consulting Supports Tourism Strategy

T&A Consulting has deep experience advising national tourism organisations and destination marketing agencies on the Indian outbound market:

• Market research and demand analysis. We provide data-driven insights into Indian traveller segments, source city analysis, seasonal demand patterns and competitive positioning.
• Destination marketing strategy. We design multi-channel marketing campaigns targeting Indian travellers, including digital marketing, influencer partnerships, trade outreach and media relations.
• Trade engagement and B2B partnerships. We facilitate partnerships between destination tourism boards and Indian travel trade, including OTAs, tour operators, airlines and corporate travel managers.
• Event strategy and roadshows. We organise and manage destination roadshows, trade events and media familiarisation trips in India.
• Policy advisory. We advise governments on visa policy, tourism infrastructure development and India-specific tourism strategies.

Contact us at: pnijhawan@taglobalgroup.com to discuss how to capture the Indian outbound tourism market.

Sources & references:
IBEF, Future Market Insights, ITB Berlin, Travel Trends Today, Travel and Tour World

India hosts over 2,100 Global Capability Centers (GCCs) employing approximately 2 million professionals and contributing over $64 billion in annual revenue. In 2025, GCCs accounted for 38% of office leasing across India’s top seven cities, the highest volume ever recorded. What began as a cost-arbitrage model has evolved into strategic command centers driving AI, product engineering and enterprise transformation at global scale. T&A Consulting helps multinational enterprises design, establish and scale GCC operations in India across technology, financial services, healthcare and manufacturing sectors.

Introduction: The Third Wave of GCC Evolution

India’s GCC story has evolved through three distinct phases. The first wave (2000-2010) was driven by cost arbitrage, with companies setting up back-office operations for IT support, payroll and basic data processing. The second wave (2010-2020) saw GCCs evolve into shared services centers handling higher-value functions such as analytics, finance, HR and procurement. The third wave, now well underway, has transformed GCCs into global innovation engines that own end-to-end product lifecycles, drive AI and digital transformation strategies, and increasingly participate in C-suite decision-making.

By 2030, India is expected to host over 2,500 GCCs employing 2.8 to 2.9 million professionals and contributing approximately $105 billion in revenue. The acceleration is driven by multiple factors: India’s unmatched STEM talent pipeline (over 2.5 million graduates annually), competitive operating costs, maturing digital infrastructure, a vibrant startup ecosystem for talent sourcing and innovation partnerships, and increasingly sophisticated state-level policies designed to attract and retain GCC investment.

What GCCs Do Today: Beyond Cost Savings

The modern GCC in India bears little resemblance to its predecessor. A survey of GCC leaders in 2026 found that 92% report their centers provide value far beyond cost savings. Key functions now handled by India GCCs include:

• AI and generative AI development. India GCCs are at the forefront of enterprise AI adoption, building large language model applications, computer vision systems, predictive analytics platforms and AI-driven automation across business functions from supply chain to customer service.
• Product engineering and R&D. Many GCCs now own complete product development cycles, from concept through design, engineering, testing and deployment. Companies such as Google, Microsoft, Amazon and SAP run some of their most critical product engineering operations from India.
• Cybersecurity operations. With cybersecurity threats escalating globally, India GCCs are building security operations centers (SOCs), threat intelligence capabilities and security product development teams. Deepwatch, a US cybersecurity firm, opened its GCC in Bengaluru specifically for AI-driven threat detection.
• Financial services transformation. BFSI sector GCCs handle everything from algorithmic trading platform development to regulatory technology (RegTech), risk modeling and digital banking infrastructure. Companies like JPMorgan Chase, Goldman Sachs and Deutsche Bank run major technology operations from India.
• ESG and sustainability reporting. ESG reporting hubs are the fastest-growing GCC segment in 2026, as global regulatory requirements for sustainability disclosure increase and companies centralise their ESG data management and reporting in India.
• Semiconductor design. Over 50 GCCs now have dedicated fabless semiconductor design units, supporting India’s broader semiconductor ambitions alongside the government’s $10 billion incentive programme.

City-Level Specialisation: Where to Build

India’s GCC landscape is characterised by city-level specialisation that companies should consider when selecting locations:

• Bengaluru. India’s GCC capital, hosting the largest concentration of centers across technology, BFSI, healthcare and retail. Deep talent pools in software engineering, AI and data science. Highest operating costs among Indian cities, but unmatched ecosystem density.
• Hyderabad. The fastest-growing GCC hub, with strong specialisation in pharmaceutical R&D, aerospace, defence and IT services. Lower operating costs than Bengaluru with increasingly competitive talent availability.
• Pune. Strong engineering and automotive talent base. Preferred by German and Japanese companies for manufacturing-linked GCC operations. Growing fintech and healthtech presence.
• Chennai. Traditional strength in manufacturing, automotive and IT services. Large GCCs from companies like Caterpillar, Daimler and PayPal. Emerging as a hub for hardware engineering and supply chain technology.
• Delhi-NCR (Gurugram/Noida). Financial services, consulting and FMCG GCC concentration. Proximity to government and regulatory bodies. DAMAC Group (UAE) launched its GCC in Noida in 2025.
• Tier-2 cities emerging. Coimbatore, Ahmedabad, Jaipur, Mysuru, Kochi and Nagpur are seeing 20% faster GCC growth than metros, driven by 30% lower operational costs. Approximately 40% of GCCs are expanding hiring into Tier-2 and Tier-3 cities to tap new talent pools and mitigate attrition risks.

Operating Models: Captive, BOT and Managed GCC

Companies establishing GCCs in India typically choose from three operating models:

• Captive (fully owned). The company establishes and operates its own entity in India. This provides maximum control over talent, IP, culture and operations but requires significant upfront investment in entity setup, office infrastructure, HR systems and local leadership recruitment. Suited for large enterprises with long-term India commitment.
• Build-Operate-Transfer (BOT). A GCC-as-a-service partner sets up and operates the center on behalf of the company, then transfers ownership after a defined period (typically 18-36 months). This accelerates time-to-value and reduces execution risk, making it suitable for companies new to India.
• Managed GCC. The company contracts a partner to manage ongoing GCC operations while retaining strategic oversight. This model offers operational flexibility and shared infrastructure benefits, suitable for mid-sized companies or those testing India before committing to a fully captive model.

Policy Environment and Incentives

Indian state governments are actively competing for GCC investment. Karnataka and Maharashtra have introduced dedicated GCC policies offering rental reimbursements, tax breaks and incentives for centers that establish operations outside main metros. The Union Budget 2026 introduced new tax incentives for centers specialising in R&D and “Safe Harbour” rules for mid-sized GCCs that simplify transfer pricing compliance.

India’s GCC-friendly policy environment extends beyond fiscal incentives. The country’s expanding network of trade agreements (India-UK CETA, India-EFTA, US-India interim framework) creates preferential access to major markets, making India-based GCCs an even more attractive proposition for companies seeking to serve multiple geographies from a single strategic location.

How T&A Consulting Supports GCC Strategy

T&A Consulting provides comprehensive advisory for multinational enterprises establishing or scaling GCC operations in India:

• Location strategy and site selection. We evaluate cities and specific micro-markets based on talent availability, cost benchmarks, infrastructure quality, state-level incentives and ecosystem fit for the company’s functional requirements.
• Entity setup and regulatory compliance. We manage the incorporation process, including company registration, FEMA compliance, tax registrations and sector-specific licensing.
• Operating model advisory. We help companies select the optimal GCC operating model (captive, BOT or managed) based on their strategic objectives, timeline, budget and risk appetite.
• Talent strategy and leadership search. We advise on talent acquisition strategy, compensation benchmarking and senior leadership recruitment for GCC operations.
• Ongoing advisory and expansion support. We provide ongoing support for compliance, policy updates, expansion into additional cities and optimisation of GCC operations.

Contact us at: pnijhawan@taglobalgroup.com to discuss your GCC strategy in India.

Sources & references:
JLL India, Flexiple, KAS Business Consulting, ALP Consulting

India has opened its insurance sector to 100% foreign direct investment under the automatic route, effective 5 February 2026. This is the final step in a 25-year liberalisation journey that began with a 26% cap in 2000 and progressively expanded to 49%, 74% and now full foreign ownership. For global insurance groups, the reform enables wholly owned Indian subsidiaries, full strategic control and unrestricted capital deployment in a market targeting “Insurance for All by 2047.” T&A Consulting helps foreign insurers and financial services firms navigate India’s regulatory framework, entity structuring and market entry strategy.

Introduction: A 25-Year Liberalisation Arc

India’s insurance sector has undergone a systematic opening over the past quarter century. In 2000, when the sector was first opened to private and foreign participation, the FDI cap was set at 26%. This was raised to 49% in 2015, then to 74% in 2021. The Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025, passed by Parliament in December 2025 and brought into force on 5 February 2026, removes the final barrier by permitting 100% FDI in insurance companies under the automatic route.

The reform was operationalised through three principal instruments: the legislative amendment to the Insurance Act, 1938; amendments to the Indian Insurance Companies (Foreign Investment) Rules, 2015; and corresponding revisions to Schedule I of the FEMA Non-Debt Instruments (NDI) Rules, 2019. The Department for Promotion of Industry and Internal Trade (DPIIT) formally notified the change through Press Note No. 1 of 2026, dated 9 February 2026.

What Has Changed: Key Regulatory Details

• 100% FDI under automatic route. Foreign investors can now acquire full ownership of Indian insurance companies without prior government approval. This applies to both life and general insurance companies.
• Insurance intermediaries expanded. The scope of insurance intermediaries eligible for 100% FDI has been expanded to include managing general agents and insurance repositories, in addition to the existing categories of insurance brokers, re-insurance brokers, insurance consultants, corporate agents, third-party administrators, surveyors and loss assessors.
• Governance safeguards retained. Despite full foreign ownership being permitted, the chairperson, managing director or chief executive officer of an insurance company must continue to be an Indian citizen. This governance requirement ensures that operational leadership remains locally anchored.
• Premium investment condition. The 100% FDI limit is available for companies that invest their entire premium within India, as announced in Budget 2025. This condition ensures that foreign-owned insurers contribute to domestic capital formation rather than simply repatriating premiums.
• Structural flexibility. The amended legislation enables the merger of non-insurance entities with insurance companies, subject to IRDAI approval. This could allow global financial services groups to integrate their insurance operations with other financial activities in India.

Market Context: Why This Matters Now

India’s insurance market is one of the world’s largest by potential but remains significantly underpenetrated. Insurance penetration stands at approximately 4% of GDP, compared to a global average of over 7% and over 10% in mature markets like the UK and US. The protection gap is enormous: India’s life insurance density is approximately $69 per capita, compared to over $3,000 in the US. The government’s vision of “Insurance for All by 2047” requires substantial capital expansion, greater product innovation and improved penetration across underserved populations, particularly in rural India and among lower-income segments.

The sector has already attracted approximately Rs 82,000 crore ($9.8 billion) in cumulative FDI. Existing foreign partners in Indian joint ventures, such as Prudential (with ICICI), Aviva, AXA, Sun Life, MetLife and Allianz, have long operated under ownership constraints. The 100% FDI reform allows these groups to either buy out their Indian partners or restructure their holdings to gain full control, fundamentally changing the competitive dynamics.

Budget 2026 has reinforced this trajectory with complementary measures including zero GST on individual life and health insurance premiums, a 7.7% increase in government capital expenditure and continued investment in digital infrastructure that supports insurance distribution.

Strategic Opportunities for Global Insurers

• Full ownership and control. For the first time, global insurance groups can establish wholly owned subsidiaries in India, enabling full alignment of strategy, brand, product design and capital allocation with the parent company’s global approach.
• JV restructuring. Existing JV partners can negotiate buy-outs or restructure equity holdings. Given the high valuations of listed Indian insurers (HDFC Life at approximately 55x P/E, ICICI Prudential at 48x, SBI Life at 45x), the financial dynamics of these transactions will be complex but potentially transformative.
• New market entry. Insurance groups that have been deterred by ownership restrictions can now enter India directly. The automatic route eliminates the need for government approval, streamlining the entry process.
• Product innovation. Full control enables faster introduction of global product lines, including parametric insurance, cyber insurance, climate risk products and embedded insurance models that are underdeveloped in the Indian market.
• Distribution modernisation. India’s digital infrastructure (Aadhaar, UPI, ONDC) creates opportunities for digital-first insurance distribution models that can reach underserved populations at significantly lower cost than traditional agency networks.
• Reinsurance opportunities. Full foreign ownership in reinsurance entities opens India’s growing reinsurance market, historically dominated by GIC Re, to greater international participation.

Regulatory Considerations and Entry Strategy

While the FDI cap has been removed, foreign entrants must still navigate a comprehensive regulatory framework. IRDAI licensing requirements, minimum capital norms (Rs 100 crore for life/general insurance, Rs 200 crore for reinsurance), solvency margin requirements, product filing procedures and distribution regulations all apply regardless of ownership structure. Companies must also comply with the Insurance Act’s provisions on investment patterns, which prescribe minimum allocations to government securities and infrastructure.

The Indian citizen requirement for the CEO/MD position means that foreign groups will need to identify or develop senior Indian leadership, creating a talent market opportunity for experienced insurance executives. Transfer pricing arrangements between the Indian entity and the global parent will be subject to scrutiny by Indian tax authorities, particularly for management services, brand licensing and reinsurance arrangements.

Data localisation requirements under the Digital Personal Data Protection Act, 2023, and IRDAI’s own data governance frameworks will affect how foreign-owned insurers manage customer data across jurisdictions.

How T&A Consulting Supports Insurance Sector Entry

T&A Consulting provides end-to-end advisory for global insurance companies entering or expanding in India:

• Market assessment and feasibility studies. We analyse market segments, competitive dynamics, distribution channels and growth projections to help insurers make informed entry decisions.
• Regulatory navigation and licensing. We guide companies through the IRDAI licensing process, FEMA compliance, entity structuring and ongoing regulatory requirements.
• JV restructuring advisory. For existing JV partners considering ownership changes, we provide strategic advice on negotiation, valuation considerations and regulatory approvals.
• Market entry strategy. We design comprehensive market entry strategies covering entity setup, distribution strategy, product positioning and go-to-market execution.
• Ongoing compliance and regulatory support. We provide ongoing support for regulatory filings, compliance monitoring and policy updates.

Contact us at: pnijhawan@taglobalgroup.com to explore insurance sector entry opportunities in India.

Sources & references:
India Briefing, Mondaq, PIB, Bar & Bench, White & Case

In February 2026, the United States and India reached an interim trade agreement that reduced the effective tariff on Indian exports from 50% to 18%, de-escalating months of trade tensions that had threatened over 55% of India’s $87 billion exports to the US. For exporters, investment promotion agencies and foreign companies with India-linked supply chains, this reset creates both relief and new strategic imperatives. T&A Consulting helps businesses, trade promotion organisations and governments navigate the evolving US-India trade landscape and position for the opportunities it creates.

Introduction: From Escalation to Reset

The US-India trade relationship entered turbulent waters in April 2025, when the United States imposed country-specific reciprocal tariffs on Indian goods. The initial 25% reciprocal tariff was compounded by an additional 25% punitive duty linked to India’s continued purchase of Russian crude oil, bringing the effective tariff on most Indian exports to 50%. This was the highest tariff rate faced by any major Asian economy and sent shockwaves through India’s export sectors, particularly engineering goods, textiles, gems and jewellery, and electronics.

The breakthrough came on 2 February 2026, when President Donald Trump announced a bilateral agreement reducing the tariff to 18%. The additional 25% punitive duty was fully rescinded, and the reciprocal tariff was cut from 25% to 18%. Certain designated products, including gems, diamonds, pharmaceuticals, smartphones, select agricultural products, tea, coffee and handicrafts, now attract zero reciprocal tariffs. In exchange, India committed to moving toward zero tariffs on US goods, halting Russian crude oil purchases, shifting energy sourcing to the US, adopting stronger procurement of American products and removing non-tariff barriers in specific sectors.

What the Agreement Actually Contains

The interim framework covers several dimensions beyond headline tariff numbers:

• Tariff reduction. The effective US tariff on most Indian goods dropped from 50% to 18%. Following a subsequent US Supreme Court ruling, this rate was further reduced to 10% under Section 122 provisions, though the full implications are still being clarified by customs authorities.
• Zero-duty categories. Gems and diamonds, pharmaceuticals, smartphones, select agricultural products (tea, coffee, fruits), and MSME-driven handicrafts now face zero reciprocal tariffs in the US. This directly benefits some of India’s most labour-intensive export sectors.
• Indian concessions. India has offered tariff concessions on alcoholic beverages, cosmetics, medical devices and specific agri-inputs from the US. Limited access has been granted for US agricultural products such as dried distillers’ grains, red sorghum and soyabean oil, while protecting sensitive sectors including dairy, rice and millets.
• Energy and geopolitical commitments. India committed to curtailing Russian crude oil purchases and increasing imports of US energy, technology, agricultural products and coal. The 25% tariff on Russian petroleum products imposed on India was terminated on 7 February 2026.
• Ongoing negotiations. The February 2026 agreement is an interim framework. Full bilateral trade agreement (BTA) negotiations are ongoing, covering agricultural market access, intellectual property protections (especially for pharmaceuticals), digital trade rules and defence procurement.

Impact on Indian Exporters and Key Sectors

The tariff reduction has immediate implications across India’s major export sectors:

• Engineering goods and electronics. India’s largest export category to the US, engineering goods saw order inflows stall during the peak tariff period. The reduction to 18% (and potentially 10%) restores competitiveness, particularly for auto components, industrial machinery and electrical equipment.
• Textiles and apparel. India’s textile exports to the US, valued at approximately $9 billion, were severely impacted by the 50% tariff. The reduced rate makes Indian textiles competitive again against Vietnam, Bangladesh and Cambodia, though the tariff differential remains a factor.
• Gems and jewellery. The zero-tariff designation for gems and diamonds is a significant win. India processes over 90% of the world’s diamonds and is the largest exporter of cut and polished diamonds to the US.
• Pharmaceuticals. Zero reciprocal tariffs on pharmaceuticals protect India’s position as the world’s largest generic drug supplier to the US, a market worth approximately $8 billion annually.
• MSMEs and handicrafts. The zero-tariff treatment for handicrafts benefits India’s vast MSME sector, which accounts for approximately 45% of total manufacturing output and employs over 110 million people.

Implications for Foreign Companies and Supply Chain Strategy

The US-India tariff reset reshapes the “China plus one” calculus for multinational companies. At 18% (or 10% post-SCOTUS), India’s tariff rate is now lower than China’s effective rate for many product categories, particularly those subject to Section 301 tariffs (45%+). This positions India as an increasingly attractive alternative manufacturing base for companies serving the US market.

However, the interim nature of the agreement introduces uncertainty. Companies building long-term supply chains need to assess the risk of tariff changes as negotiations continue. The ambitious scope of India’s commitments, including the $500 billion purchasing pledge (relative to India’s total annual government budget of $590 billion), suggests that some elements may be renegotiated or phased over time.

For companies already operating in India or considering India entry, the key strategic questions are: Which product categories benefit most from the current tariff structure? How durable is the 18% (or 10%) rate? What is the timeline for the comprehensive BTA? And how do the India-UK CETA, India-EFTA and other trade agreements interact with the US framework to create multi-market access advantages?

Implications for Trade Promotion Organisations and IPAs

• Update trade facilitation messaging. IPAs and export promotion bodies should quantify the tariff savings under the new framework and communicate them to exporters and foreign buyers.
• Target US companies for India sourcing. The tariff reset makes India-sourced goods more cost-competitive for US importers. IPAs should proactively identify US companies that could benefit from India sourcing in sectors like auto components, textiles, electronics and chemicals.
• Monitor ongoing BTA negotiations. The interim agreement will evolve. Trade promotion organisations should track negotiation developments and advise their stakeholders on emerging opportunities and risks.
• Leverage the zero-tariff categories. Focus export promotion efforts on the product categories that now enjoy zero reciprocal tariffs, including gems, pharmaceuticals, handicrafts and select agricultural products.
• Address non-tariff barriers. India’s commitment to removing non-tariff barriers creates opportunities for US companies entering the Indian market. IPAs should facilitate introductions and help navigate the evolving regulatory landscape.

How T&A Consulting Supports Trade Strategy

T&A Consulting provides comprehensive trade advisory services for businesses, export promotion bodies and governments navigating the US-India trade landscape:

• Trade agreement impact assessment. We quantify the commercial impact of the tariff changes on specific products, sectors and supply chains, helping companies make informed sourcing and investment decisions.
• Market entry and export strategy. We design market entry strategies for Indian exporters targeting the US and for US companies entering India, incorporating the latest tariff frameworks and trade agreement provisions.
• Supply chain advisory. We advise multinational companies on India-based manufacturing and sourcing strategies, including PLI scheme eligibility, state-level incentives and logistics optimisation.
• Policy monitoring and advisory. We track ongoing BTA negotiations and regulatory changes, providing timely updates and strategic guidance to our clients.

Contact us at: pnijhawan@taglobalgroup.com to discuss how the US-India trade reset affects your business strategy.

Sources & references:
India Briefing, ClearTax, Morgan Lewis, PIB, Tariffs Tool

India’s Digital Public Infrastructure (DPI) is no longer a domestic governance story. It is a market entry accelerator. With UPI processing over 600 million transactions daily, ONDC operational in over 630 cities and the India Stack enabling near-instant identity verification, payments and data exchange, foreign companies entering India can plug into a digital backbone that compresses time-to-revenue and reduces operational friction. T&A Consulting helps businesses and trade promotion organisations leverage India’s digital infrastructure for faster, more efficient market entry.

Introduction: What Is India’s Digital Public Infrastructure?

Digital Public Infrastructure refers to foundational, shared digital systems that enable secure interactions between people, businesses and governments at population scale. India’s DPI, commonly referred to as “India Stack,” rests on three foundational layers: digital identity (Aadhaar), real-time interoperable payments (UPI) and consent-based data exchange (Account Aggregator framework and DigiLocker). Built on top of these foundations are sector-specific platforms such as the Open Network for Digital Commerce (ONDC), the Goods and Services Tax Network (GSTN) and the Ayushman Bharat Digital Mission for healthcare.

The scale of adoption is striking. More than 1.44 billion Aadhaar numbers have been generated as of March 2026, covering virtually the entire population. UPI handles approximately 81% of all retail digital payments by volume in India, processing over 21 billion transactions by early 2026 and supporting more than 65 million merchants. DigiLocker has over 67 crore users with more than 950 crore documents issued. India’s digital economy contributed 11.74% of GDP in FY 2022-23, approximately $347.6 billion, with a projection to reach 20% of Gross Value Added by FY 2029-30.

For foreign companies, this infrastructure is not background context. It is operational infrastructure that directly affects how they will sell, collect payments, verify identities, comply with regulations and reach customers in India.

UPI: The Payments Layer That Changes Everything

The Unified Payments Interface, launched in 2016, has transformed how India transacts. Unlike closed proprietary payment systems, UPI is an open, interoperable protocol that enables real-time bank-to-bank transfers via mobile devices, with zero transaction fees for consumers. According to ACI Worldwide’s 2024 report, India accounted for approximately 49% of global real-time payment transactions. Within India, UPI has made digital payments a default behaviour, from street vendors using QR codes to enterprise-scale B2B settlements.

For foreign companies entering India, UPI has several practical implications. First, payment collection is frictionless. Any business, regardless of size, can accept UPI payments through a simple QR code or payment link, eliminating the need for expensive point-of-sale hardware or complex payment gateway integrations. Second, UPI creates a transaction trail that enables small businesses and new entrants to build credit histories, potentially unlocking working capital from banks and fintech lenders. Third, UPI’s cross-border expansion (now live in 8 countries including the UAE, Singapore, France, Sri Lanka, Nepal, Bhutan, Mauritius and Qatar) means that companies with operations across these markets can leverage a common payments infrastructure.

For trade promotion organisations and IPAs advising foreign companies on India entry, UPI is a tangible proof point of India’s digital readiness. It eliminates one of the traditional barriers to market entry: the complexity and cost of setting up payment collection in a new market.

ONDC: Democratising Digital Commerce

The Open Network for Digital Commerce (ONDC), launched in 2022, aims to do for e-commerce what UPI did for payments. It is an open protocol that decouples discovery, ordering, payment and fulfilment, enabling buyers and sellers to transact across applications rather than within proprietary platforms like Amazon or Flipkart. A buyer on one app can discover and purchase from a seller on a different app, with fulfilment handled by yet another provider. This interoperable design lowers barriers for small and medium enterprises that would otherwise be locked out by the high commissions and visibility costs of dominant platforms.

As of early 2026, ONDC is operational in over 630 cities with more than 1.16 lakh retail sellers live on the network. The platform has processed over 154 million cumulative orders, with average daily transactions of approximately 490,000 as of December 2024. While adoption remains uneven and operational frictions persist (particularly in logistics and merchant experience), the trajectory is clear: ONDC is building a public digital commerce layer that any business, foreign or domestic, can plug into.

For foreign SMEs considering India entry, ONDC offers a potentially transformative channel. Instead of negotiating with large marketplace platforms for visibility and bearing 15% to 30% commissions, a foreign brand can list products through an ONDC-compatible seller application, set its own pricing and reach consumers across multiple buyer applications. The network’s open architecture also supports services (food delivery, mobility, logistics), making it relevant beyond retail.

Aadhaar and Account Aggregator: Simplifying KYC and Credit Access

Foreign companies setting up operations in India traditionally face lengthy Know Your Customer (KYC) processes for banking, regulatory registrations and vendor onboarding. Aadhaar-based e-KYC has compressed this from days or weeks to minutes, reducing verification costs from approximately $20 to $0.15 per transaction. Banks, fintech companies and regulatory bodies now accept Aadhaar-based authentication for account opening, loan applications and regulatory filings.

The Account Aggregator framework, operational since 2021, adds another layer of efficiency. It allows individuals and businesses to share verified financial data (bank statements, tax returns, GST filings) securely and digitally with any requesting institution, with the data owner’s consent. For a foreign company seeking to establish banking relationships, secure credit lines or evaluate Indian partners, the Account Aggregator system enables faster due diligence and credit assessment.

DigiLocker, with over 67 crore users, provides a secure digital document wallet for verified documents, including tax filings, educational certificates and business registrations. This reduces the paper documentation burden that has historically slowed business processes in India.

GSTN and GeM: Digital Infrastructure for Compliance and Government Business

The Goods and Services Tax Network (GSTN) is the digital backbone of India’s indirect tax system. All GST registrations, returns and payments are processed through the GSTN portal, creating a transparent and auditable compliance trail. For foreign companies, the GSTN simplifies tax compliance by providing a single, unified system for indirect tax management across all Indian states, replacing the pre-2017 patchwork of state-level VAT, central excise and service tax.

The Government e-Marketplace (GeM) is an online procurement platform used by central and state government agencies. With over 11 lakh micro and small enterprises registered, GeM provides a transparent, competitive bidding environment. Foreign companies with a local entity in India can register on GeM and participate in government procurement, a significant market given India’s public spending on infrastructure, defence and technology.

DPI as a Global Export: India’s Digital Diplomacy

India’s DPI is also becoming a platform for international cooperation. As of February 2026, India has signed Memoranda of Understanding with 24 countries for cooperation on India Stack and DPI. UPI is now live in 8 countries, with further expansion planned. The G20 New Delhi Leaders’ Declaration of 2023 explicitly recognised DPI as a development accelerator, positioning India as a practical partner for countries seeking to build population-scale digital systems.

For trade promotion organisations and economic development agencies, India’s DPI diplomacy creates new opportunities. Countries adopting India Stack-inspired frameworks can facilitate smoother bilateral digital trade, interoperable payment flows and data exchange. The IMF has identified India as a leading example of how shared, reusable digital rails can reshape an economy, estimating that every dollar invested in India’s DPI generates returns of $3.2 to $4.0 across the broader economy.

Practical Recommendations for Foreign Companies

For foreign companies planning India entry, India’s DPI creates specific operational advantages that should be factored into market entry strategy:

• Integrate UPI into your payments strategy from day one. Whether you are a B2C brand, a SaaS company or a services firm, UPI should be your primary payment collection mechanism. It is free, instant, universally accepted and creates a digital trail for reconciliation and compliance.
• Evaluate ONDC as a distribution channel. If you are selling physical products or services, assess whether ONDC-compatible seller applications can provide a cost-effective route to market, particularly for initial market testing before investing in your own e-commerce infrastructure.
• Use Aadhaar-based e-KYC for faster banking and compliance setup. Work with your banking and legal partners to leverage e-KYC for account opening, regulatory registrations and vendor onboarding.
• Build on GSTN for compliance efficiency. Ensure your accounting and ERP systems integrate with GSTN for seamless GST return filing. Many cloud-based accounting platforms (Zoho, Tally, ClearTax) offer built-in GSTN integration.
• Explore GeM for government business. If your products or services are relevant to government procurement, register on GeM to access a transparent, high-volume market.
• Factor DPI into your cost-benefit analysis. India’s digital infrastructure reduces several cost lines that traditionally inflate market entry budgets: payment processing fees, KYC and compliance costs, distribution overheads and customer acquisition costs. Quantify these savings in your market entry business case.

How T&A Consulting Supports DPI-Enabled Market Entry

T&A Consulting helps foreign companies and trade promotion organisations understand and leverage India’s digital infrastructure as part of their market entry strategy. Our services include:

• Digital readiness assessment. We evaluate how India’s DPI layers (UPI, ONDC, GSTN, Aadhaar e-KYC) can be integrated into a company’s operational model, identifying specific cost savings and efficiency gains.
• E-commerce and digital trade strategy. We advise on ONDC integration, digital marketing, cross-border payment flows and digital trade compliance, helping companies build a digital-first India presence.
• Payment infrastructure advisory. We support companies in setting up UPI-based payment collection, cross-border payment flows and integration with India’s banking and fintech ecosystem.
• Market entry strategy and execution. We provide comprehensive market entry support, from feasibility assessment and entity setup to partner identification and go-to-market execution, with DPI integration embedded throughout.
• Trade promotion and IPA advisory. We help trade promotion organisations incorporate India’s DPI story into their investment attraction and trade facilitation strategies, creating compelling narratives for foreign businesses.

If your organisation is evaluating India as a market and wants to understand how UPI, ONDC, Aadhaar and the broader India Stack can accelerate your entry, T&A Consulting can help you build a DPI-integrated market entry strategy.
Contact us at: pnijhawan@taglobalgroup.com to explore how India’s digital infrastructure can work for your business.

Sources & references:
Press Information Bureau (PIB), ORF (Observer Research Foundation), India Briefing, Biometric Update, Stanford Social Innovation Review, CSEP