India's FDI Crisis: Investment Uncertainty Looms Large

The Congress expressed concern over the significant decline in net FDI inflows into India, highlighting an unprecedented 96% drop to USD 0.4 billion in 2024-25. This decline reflects considerable investment uncertainty, with both foreign and domestic businesses opting to invest abroad, according to AICC general secretary Jairam Ramesh.

The Congress party has raised alarms about a drastic fall in net foreign direct investment (FDI) inflows into India, which plummeted by 96% to a mere USD 0.4 billion in the fiscal year 2024-25.

AICC general secretary Jairam Ramesh pointed out that RBI's recently released data highlights the trend of increasing investment uncertainty within the nation. He noted that more companies, both foreign and domestic, are choosing to channel their investments abroad due to prevailing uncertainties.

Ramesh cautioned against neglecting the implications of this decline, indicating potential long-term repercussions for India's economic landscape. The data was published in the RBI's May bulletin and detailed a shift towards net outward FDI and repatriation trends.

(With inputs from agencies.)