ET Commentary

FDI doesn't reflect India's performance: Why the deal will have to be sweetened

FDI doesn't reflect India's performance: Why the deal will have to be sweetened
iStock

Over the past two years, foreign portfolio investments (FPIs) into India have gyrated wildly.

Synopsis

The policy changes, while sending out the right signals, underscore the need for a continuity in approach to encourage foreign investment into one of the fastest-growing major economies of the world.

By , ET CONTRIBUTORS
7 mins read, Last Updated:
Foreign direct investment (FDI) serves as a vindication of a country's economic policies, and the highest annual inflow during the previous fiscal year can provide occasion for cheer when most other macroeconomic variables are looking vulnerable. Retail inflation in April was 7.79%, at an eight-year high and the fourth month in a row when it was in breach of the 6% upper band given as mandate to the Reserve Bank of India (RBI). The economy is

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