FDI

RBI’s ECB reset marks a decisive shift, especially its decision to lift rate-band controls and go by market-set loan pricing. This signals confidence in India’s macro fundamentals. As firms gain easier access to global capital, they must formulate borrowing strategies with risks properly assessed.

Experts say the decision allowing automatic route for sub-10% investments from border countries could revive stalled deals and reopen flows of Chinese capital.

Easing foreign direct investment from border-sharing countries could revive the interest of Chinese manufacturers in India, help us join global value chains and serve our export ambitions. Yet, safety is paramount. We must keep electronic components under close watch for security risks.

India’s net FDI looks set to record another dismal year. Big Tech’s AI data centre plans aren’t enough. Our economy needs a broad revival of capital inflows. Push for full-scope economic relations with the US.

Opening the insurance sector fully to foreign ownership may bring in more investment—but it won’t be a silver bullet. For this sector to supply the sort of long-term funds that India’s economy needs, strong brands must do the hard work of widening coverage.

Amid a pall of gloom cast by stock market outflows and a sliding rupee, India's FDI outlook has brightened as Amazon and Microsoft commit billions to our economy. Last year’s crash in net FDI will hopefully end up as no more than a blip.