Budget 2025: Charting a new growth path amid excess capacity, FDI concerns
Net FDI inflows are plummeting due to repatriation by foreign firms, coupled with increased outbound foreign investment by Indians
 "Budget 2025: Charting a new growth path amid excess capacity, FDI concerns")
Challenges
- Capacity utilisation is struggling to rise largely on account of weak demand and muted capex.
- Net FDI inflows are plummeting due to repatriation by foreign firms, coupled with increased outbound foreign investment by Indians.
Takeaways
- Announcement of a revamped model Bilateral Investment Treaty (BIT) is expected to sustain foreign investment.
- Infrastructure spending, in conjunction with private players, is expected to quicken up capacity utilisation.