EU Firms Drive India’s USD 6.1 Billion Manufacturing Surge, Signalling Deeper Industrial Momentum

India’s manufacturing investment pipeline received a fresh boost in FY 2025–26, with Invest India facilitating 60 projects worth over USD 6.1 billion across 14 states. European investors accounted for 42% of the grounded investment value, placing EU-India economic engagement at the centre of the latest official investment update.

European investors drive the momentum

European investors accounted for 42% of the grounded investment value, according to the official release. The statement also noted participation from the United States, Japan, South Korea and Australia, alongside contributions from Brazil, New Zealand and Canada.

EU firms power India’s manufacturing boom with record investments and job growth.

Projects spread across 14 states

The projects were grounded across 14 states, with Gujarat, Madhya Pradesh, Maharashtra and Andhra Pradesh among the key destinations. Rajasthan, Uttar Pradesh, Tamil Nadu, Karnataka, Haryana and Delhi also featured prominently, while Assam, Bihar and Sikkim were included in the list.

Manufacturing sectors attract the largest share

Chemicals, Pharmaceuticals and Biotechnology, and Food Processing together accounted for around 65% of the grounded investments. The release also highlighted activity in Electronics System Design and Manufacturing, Aerospace and Defence, and Auto and EV sectors.

Jobs and project scale rise sharply

The projects are expected to generate more than 31,000 jobs. The release said grounded investments in FY 2025–26 were nearly three times higher than in FY 2024–25, while the average deal size rose by 1.8 times.

Official remarks underline investor confidence

DPIIT Secretary Amardeep Singh Bhatia said the momentum reflects policy clarity, institutional commitment and investor confidence. Invest India Managing Director and Chief Executive Officer Nivruti Rai said the results demonstrate the impact of coordinated policy support and strategic investment facilitation.

India’s policy framework supports the trend

The release linked the investment trend to India’s wider industrial framework, including Make in India, Production Linked Incentive schemes and infrastructure development. It said these measures have strengthened India’s position as a manufacturing destination for global investors.

Official source:

PIB / Ministry of Commerce and Industry press release, with the same update also shared on the PIB India handle.