India Country Summary

FATF Status

India is not currently on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The latest Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in India was undertaken in 2024. According to the follow-up Evaluation, India was deemed Compliant for 11 and Largely Compliant for 26 of the FATF 40 Recommendations. It was assessed Highly effective for 0 and Substantially Effective 6 of the Effectiveness ratings.

India faces significant challenges related to crime and corruption, with widespread issues such as human trafficking, arms trafficking, and financial crimes exacerbated by political instability and inadequate law enforcement. Despite the presence of various anti-corruption laws and civil society efforts to raise awareness, corruption remains deeply entrenched at multiple levels of government, hindering foreign investment and effective governance.

India, currently the world's fifth-largest economy with a GDP of $4.2 trillion, is on track to become the third-largest economy by the early 2030s, driven by a robust GDP growth rate of 6.5 percent in 2024. The investment climate has significantly improved due to strategic reforms such as liberalized foreign investment rules, streamlined tax systems, and modernized labor laws, alongside over $1 trillion in infrastructure investments since 2020 that have enhanced connectivity and urban development. However, challenges remain, including protectionist policies that impose high tariffs and localization requirements, which hinder trade expansion and complicate integration into global supply chains, while the government's initiatives like "Make in India" and "Digital India" aim to bolster industrial growth and digital penetration.