Course correction

FDI fall shows need for reform and openness

For the past 10 years, the Union government has been quite sanguine about India’s position as a desirable investment destination. Backed by strong macro economic performance and positive statements from global investors, senior officials in New Delhi have been confident that nothing needs to change in attracting foreign direct investment (FDI).

Yet more recent numbers paint a sombre picture. Most recently, the data from the United Nations Conference on Trade and Development, or Unctad, has demonstrated that FDI into India fell 43 per cent in just one year, between 2022 and 2023. This figure is not