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

New Delhi: Solely three international manufacturing corporations arrange operations in India in 2024-25 regardless of the federal government’s push to show the nation into a worldwide manufacturing hub, in line with information from the Ministry of Company Affairs (MCA).In distinction, within the companies sector, 53 international corporations established operations final fiscal – although that too marked a decline from 91 in 2019-20, an ET evaluation of official information confirmed.

All three new international manufacturing corporations belonged to the equipment and tools phase. They had been the one manufacturing corporations to arrange store within the nation in FY25 throughout the economic sector, which incorporates manufacturing, building, electrical energy, gasoline and water provide, and mining & quarrying corporations.

The quantity is the second lowest within the final six years since 2019-20, whereas the best was in 2020-21 when 10 new international industrial corporations had been arrange. Total, the share of commercial sector amongst newly established international corporations in India declined considerably to 10.2% in 2024-25 from 26% in 2019-20.

Underneath the Corporations Act, 2013, a international firm is an entity integrated exterior India that conducts enterprise inside India.

The federal government has rolled out a number of initiatives to spur manufacturing within the nation, together with Make in India, Atmanirbhar Bharat, and the production-linked incentive (PLI) scheme for a number of sectors. New Delhi had additionally diminished company tax for brand spanking new funding within the manufacturing sector.The MCA information additionally confirmed that the variety of energetic international corporations has declined through the years.A complete of 5,228 international corporations had been registered in India as of March 2025. Out of which, 3,286 or 62.9% had been energetic. This marks a drop from March 2019, when 70.8% of registered international corporations had been energetic.