Recent reports have confirmed that all is not well when it comes to foreign investment in India. Foreign direct investment (FDI) in particular — prized over other forms of capital flows because it directly adds to the productive base and is long-term and patient in nature, unlike the “hot money” of portfolio investment — is slowing.
The growth rate of FDI hit a five-year low in 2017-18, according to recent data from the Department of Industrial Policy and Promotion (DIPP). It grew by only 3 per cent, to $44.85 billion – although this year saw the big-ticket ...
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