For a while now, foreign direct investments (FDI) into India have been surging. The bigger worry was the long spell of insipid growth, even contraction in exports. Over the past few months, both these variables have performed oddly.
FDI inflows in February fell to just $0.9 billion as against a $3.2 billion average over the previous 12 months. Is this the start of a reversal? According to an HSBC Global Research report, the long-term FDI outlook for India remains positive. As charts 1 and 2 show, India’s net FDI has benefitted by a near doubling of FDI inflows between 2013

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