India eyes green channel for European investments

India is working on creating a "green channel" to streamline investments from European and British companies, mirroring similar models used for Japan and Korea. A senior government official stated that this mechanism will provide dedicated support and assist investors in navigating government approvals. The government aims to ensure that trade agreements with the European Union and the UK not only facilitate trade but also attract capital investment.

This initiative gained momentum following the implementation of the India-UK Comprehensive Economic and Trade Agreement, which came into force in July 2025. The UK is India's sixth-largest inward investor, with cumulative equity investments totaling $35 billion as of September 2024. In return, India's outbound investment in the UK reached $19 billion by March 2024. As of July 2025, there are 971 Indian companies operating in the UK, employing over 1 lakh people.