Foreign investment in India slowing but shift from China spells opportunity

Only few states drawing companies' attention to set up projects

India’s headline foreign direct investment (FDI) numbers rose from $62 billion in 2018-19 to a record $84.8 billion in 2021-22.

This represents a 36.8 per cent increase in FDI since the pandemic began, but the growth is less impressive when one considers India’s economic growth in the interim. Net FDI flows are up from 1.1 per cent of gross domestic product (GDP) in 2018-19 to 1.2 per cent in 2021-22.

FDI represents long-term money that companies put to work in India by setting up factories and plants. The growth in such investments — important for technology transfer and the jobs