Boosting FDI: India's Path to Economic Growth

The Economic Survey highlights India's need for a multi-pronged strategy to boost FDI amid global volatility. Proactive reforms, targeting GVC anchors, and strong state cooperation are essential. India must enhance its investment climate, integrating structural reforms, to sustain growth and position as a global production hub.

In a call for action, the Economic Survey emphasized the need for a multi-faceted strategy to improve India's foreign investment climate amid increasing global instability. The survey pinpointed sustaining FDI inflows as the key challenge, despite government efforts and economic management prowess.

Proposed measures include proactive reforms and strategic engagement with GVC anchors, alongside a robust cooperative framework between federal and state entities. Emphasizing India's strengths such as macroeconomic stability and market size could help counteract tariff barriers and position the nation as a prime investment hub.

India's complexities in attracting FDI surpass those of competitors like Vietnam and Malaysia, the survey noted. However, by leveraging political stability and economic resilience, and boosting policy predictability, the country could maintain its investment momentum, as evidenced by a substantial increase in FDI inflows reported by the RBI.

(With inputs from agencies.)