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India Courts FDI: 'Up Your Game' in Tough Global Market
3 Dec
Summary
- India needs to improve its strategy to attract foreign investment.
- FDI inflows are expected to surpass $100 billion in FY26.
- Government plans policy reviews to boost manufacturing and FDI.
India's Chief Economic Adviser, V Anantha Nageswaran, emphasized the need for the nation to significantly enhance its strategies for attracting foreign direct investment (FDI). He noted that the current geopolitical and geo-economic climate presents a more challenging environment compared to previous years, requiring India to "up its game" in courting global supply chains and investments.
Despite these challenges, Nageswaran expressed optimism, projecting that gross FDI flows could surpass $100 billion by fiscal year 2026. He highlighted the importance of addressing tax, regulatory, and infrastructure-related issues to create a more conducive investment climate. Recent data indicates a 16.1 percent year-on-year increase in gross FDI inflows for the first half of FY26, reaching $50.36 billion.
The government is also reviewing its FDI policies, with plans to implement changes across various sectors to make India a more attractive investment destination. A key objective is to increase the manufacturing sector's share in GDP to 25 percent by 2030, supporting the nation's economic growth and integration into global value chains.
