EconSurvey
FDI into India remains below potential, needs proactive reforms
This story was originally published at 20:53 IST on 29 January 2026
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--EconSurvey: Engaging top global cos, promoting India's advantages to aid FDI
--EconSurvey: FDI inflows remain below potential, need proactive reforms
--EconSurvey: Sustaining FDI inflows amid high global volatility a challenge
NEW DELHI – Foreign direct investments into India remain below their potential, especially for infrastructure needs, and sustaining the inflows is a challenge in an environment of heightened global volatility, according to the Economic Survey for 2025-26 (Apr-Mar) tabled in the Parliament Thursday. This underscores the need for pro-active reforms.
In Apr-Nov, gross FDI inflows into India rose to $64.7 billion from $55.8 billion in Apr-Nov 2024, as per latest Reserve Bank of India data. In 2024-25 (Apr-Mar), gross FDI inflows into India were $81.0 billion, an increase of 13% from $71.3 billion in FY24.
The multi-pronged approach to boost FDI inflows should involve developing a targeted strategy that identifies a specific set of global value chain anchors and establishes a state apparatus that collaborates directly with them as partners, according to the Economic Survey, authored by a team led by Chief Economic Adviser V. Anantha Nageswaran.
"The direct engagement will help resolve cross-agency issues and provide customised and time-bound solutions," it said. "Additionally, it is crucial for India not only to offer compelling incentives but also to ensure these incentives are reliably implemented."
Further, creating a task force to engage top global companies and promote India's advantages - stability, macroeconomic strength, sustained growth and market size - could boost FDI, especially in targeted sectors, it said, adding that proactive diplomacy, highlighting these strengths, can help offset tariff challenges.
The Economic Survey highlighted that signing of free trade agreements with countries bodes well for India's FDI inflows, provided these agreements are effectively implemented. End
US$1 = INR 91.96
Reported by Pratiksha
Edited by Ashish Shirke
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