Data tracker: Significant chunks of India's FDI inflows aimed at distressed corporate assets

Nearly 50% of the $44 billion that came in as foreign direct investment inflows in 2016 went towards brownfield projects

India has seen strong foreign direct investment (FDI) inflows under the NDA government even as domestic private investment continues to remain muted. This situation has baffled many. But unfazed by that, Prime Minister Narendra Modi has claimed credit for FDI surge, citing it as an endorsement of his government’s overall economic policy.

An analysis of FDI data however reveals that big chunks of inflows have been used to buy distressed assets of Indian companies. These are companies struggling with overleveraged balance sheets. The data therefore shows that a significant chunk of India’s FDI inflows aren’t boosting Modi’s flagship