Market Entry

India Market Entry in 2026: 35 Questions, Answered With Primary Data

Entering India is less one big decision than a series of small ones in the right order. This research puts them in sequence, with the data behind each.

2 min read
India Gate in New Delhi under a pink evening sky | Diwali 2026
In this article

Companies come to India by very different doors. Some sell from abroad and never register here. Some open an office, some a subsidiary, some a capability centre with thousands of staff. Each door has its own rules, and most of the costly mistakes happen where two of them meet.

$94.5 bn
Gross FDI into India, FY26
101
Foreign companies registering offices, FY26
2,117
Companies running GCCs in India
3
FDI Press Notes issued in 2026

Sources: DPIIT via India Briefing; MCA via IBEF; Zinnov-Nasscom; DPIIT Press Notes.

This page maps Naraway's research on entering India in 2026. Every piece is built on primary data, from RBI's compounding orders to DPIIT's investment statistics, and each answers one question.

Why India, and How It Compares

Trade Routes Into India

Selling From Abroad

Setting Up in India

Apps and Data

Sectors

Running the Company

What Changed in 2026

DateChange
9 FebruaryInsurance opened to 100% FDI on the automatic route
1 AprilIncome-tax Act, 2025 replaced the 1961 Act
1 MayEasier approval for investors with up to 10% land-border ownership
8 MayCentral rules under the four labour codes notified
15 JulyIndia-UK trade agreement in force
23 JulyExport-only inventory e-commerce opened to FDI

Sources: as cited in each linked article.

In short

Entering India in 2026 means choosing a route first: selling from abroad (GST from the first sale, an income tax test at Rs 2 crore), an office (liaison, branch or project, with RBI approval and parent profit tests), or an Indian subsidiary (incorporated through SPICe+, taxed at a 22% base rate if opted). Sector rules, data law, payments and the annual compliance calendar follow from that choice. In 2026, India opened insurance to 100% FDI, eased approval for small land-border stakes, brought in a new Income-tax Act and put the India-UK trade agreement into force.

  • Route first: sell from abroad, open an office, or form a subsidiary.
  • India took US$94.53 billion of gross FDI in FY26, a record.
  • Three FDI Press Notes in 2026: insurance, land-border stakes, export e-commerce.
  • The Income-tax Act, 2025 applies from 1 April 2026.
  • DPDP duties apply from around May 2027.

Sources

  1. India FDI Report FY 2025-26, India Briefing
  2. Foreign company registrations in India hit nine-year high in FY26, IBEF
  3. India GCC Landscape 2026, Zinnov and Nasscom

Naraway

Naraway is a Global Business Solutions Platform. Our legal, technology, growth, and talent teams write from what we deliver for startups, growing businesses, and enterprises.

Frequently Asked Questions

What is the first decision when entering India?

The route: selling from abroad without an Indian entity, opening a liaison, branch or project office, or forming an Indian subsidiary. Tax, approvals and compliance follow from it.

Can a foreigner start a business in India?

Yes. Foreign individuals and companies can own Indian companies within FDI rules; most sectors allow 100% foreign ownership on the automatic route.

What changed for foreign businesses in India in 2026?

Insurance opened to 100% FDI, investors with small land-border stakes got easier approval, export-only inventory e-commerce opened, the Income-tax Act, 2025 took effect and the India-UK trade agreement came into force.

How much foreign investment does India receive?

US$94.53 billion of gross FDI in FY 2025-26, a record, with US$58.85 billion of equity.

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