The FDI problem

Shrinkage reveals questions about future of Indian growth

The data released by the Department for Promotion of Industry and Internal Trade (DPIIT) reveals some worrying news about foreign direct investment (FDI) in India. According to the DPIIT, foreign direct investment in equity has in fact declined in 2018-19, for the first time in six years. The decline is not great — only 1 per cent or so, from $44.85 billion to $44.36 billion, but it is nevertheless significant. This data on FDI flows has not always been released on time, in spite of the Reserve Bank of India passing on the required figures to the DPIIT in a