[Updated] Foreign Direct Investment (FDI) in India

Despite the slowdown in the global economy, inflows of foreign investment into India has not been impacted. In fact, India is among the top 10 recipients of the FDI in 2019, attracting $49 billion inflows, a 16% increase when compared to last year. However, the majority went to the service sector. India has failed to attract investments in other vital sectors like the manufacturing sector that is currently facing a crisis. To add to the woes of these sectors, recently, new modifications were made in India’s FDI policy as a countermeasure to “opportunistic takeover” of domestic firms by foreign entities. This new rule targets China in particular as it is currently making use of the economic crisis by investing in stressed sectors in many countries across the world.

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