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 issues such as human trafficking, arms trafficking, and financial crimes prevalent across the country. Despite efforts to combat these problems through various laws and international cooperation, corruption remains deeply embedded, particularly at lower levels of government, and the judicial system struggles with resource shortages and case backlogs, undermining resilience to crime.

India is currently the fastest-growing large economy globally, boasting a GDP of $3.4 trillion and a population exceeding 1.4 billion, positioning it as the fifth largest economy in the world. With an anticipated growth rate of six to seven percent in the coming years, driven by favorable demographics and rapid industrialization, India aims to become a developed nation by 2047, although achieving this goal will depend on effective macroeconomic policies and empowering its workforce. The investment climate is bolstered by recent structural reforms aimed at improving the business environment, although protectionist measures and high tariffs pose challenges for foreign investors, particularly in sectors like e-commerce and manufacturing.