India plans a dedicated investment “green channel” for EU and UK investors, modelled on the existing Japan Plus and Korea Plus mechanisms.
The initiative aims to convert recent trade agreements into greater investment flows, with officials directly monitoring investor proposals and resolving bottlenecks.
British companies have invested around $35 billion in India cumulatively, while nearly 667 UK firms operate in the country, employing more than 500,000 people.
India plans to establish a 'green channel' to serve as a dedicated handholding desk for investors from the European Union and the United Kingdom. The proposed mechanism follows the framework of the existing 'Japan Plus' and 'Korea Plus' models, which currently accelerate investment proposals from Tokyo and Seoul.
"A mechanism will be created to facilitate entry of investors," a senior government official told the publication. Senior officials will directly monitor the channel to ensure swift resolution of issues.
1 August 2026
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Driving Capital Beyond Trade
The government intends to expand recent trade agreements beyond the basic exchange of goods and services. Officials aim to use these bilateral pacts to actively drive capital flow into India, Economic Times reported.
The UK remains India's sixth-largest inward investor. British entities made cumulative equity investments of $35bn up to September 2024.
Foreign direct investment equity inflow from the UK stood at $1bn in the 2025-26 financial year. Around 667 British companies currently operate in India, employing more than 500,000 people.
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Capital flows are bilateral. India's outward investment in the UK reached $19bn by March 2024. Data from July 2025 shows 971 Indian firms operate in the UK, providing jobs to over 100,000 people.
Catalysing New Trade Pacts
The push for a dedicated investment desk follows the activation of the India-UK Comprehensive Economic and Trade Agreement. The bilateral pact formally came into force on July 15, 2026.
Simultaneously, the proposed India-EU free trade agreement is nearing completion. Often described as the "mother of all deals," the agreement has finished legal scrubbing and is expected to be signed by the end of 2026.
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The green channel aligns with recent structural changes in the domestic financial sector. India recently liberalised its rules to allow 100% foreign direct investment in the insurance sector and raised the investment limit in banking to 74%.
Under a liberalised licensing framework, eligible foreign banks can set up as many as 15 branches over a four-year period.
