foreign direct investment

In an increasingly investment-cautious world, why reforms aren't enough and it is the Indian state that has to absorb risk

The Reserve Bank of India has unveiled a multi-pronged strategy to bolster the rupee and manage external economic pressures. Key measures include expanding access to long-term government bonds, easing foreign investment in equities, and offering concessional forex swaps. These initiatives aim to attract foreign capital, enhance market depth, and improve foreign exchange liquidity, while export realization timelines have been tightened.

India’s net FDI has now shrunk to a trickle as rising repatriation and disinvestment offset strong inflows. What changed?

Foreign investors are increasingly favoring India's debt market, with FPI debt inflows comprising a significant portion of overall foreign capital. This trend is boosted by global bond index inclusion and easier access routes. With attractive real yields and a stable currency outlook, India is poised for more debt investments, crucial for managing the current account deficit and supporting the rupee.

The exuberance of Indian investors has pushed valuations so high that MNCs as well as PE/VC funds are seizing the opportunity to exit

India achieved a current account surplus of $7.1 billion in Q4 FY26, though it was lower than the previous year. Despite a widening merchandise trade deficit, strong growth in services exports, particularly computer and business services, helped maintain the surplus for the quarter. For the full fiscal year, the deficit remained stable.

The BJP has strongly refuted Rahul Gandhi's "economic tsunami" warning, calling it fear-mongering. Party leader Amit Malviya highlighted India's economic resilience with strong indicators like rising E-way bills and FDI, asserting the government has implemented measures to protect citizens and businesses from global shocks, contrasting it with the UPA era's economic vulnerabilities.

In 2013, the FCNR (B) scheme mobilised a critical $26 billion. The rupee’s fall was arrested, and the currency clawed its way back. Should India walk on the same path again?

The widespread online attention surrounding the gift exchange seemingly led to speculative activity in the stock, despite there being no business link between the company and the confectionery brand. In fact, Parle Products is not a listed company.

S&P Global has said that the country has adequate financial buffers to manage a wider current account deficit that could emerge because of rising crude oil prices. India’s current account deficit has narrowed over the past few years, although fluctuations in global crude prices now pose a risk to that improvement.

They are today the drivers of the country’s services exports and GDP growth; they are doing cutting-edge tech work; India needs a GCC policy to make them catalyse our educational and research institutions, and our deeptech startup ecosystem