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.