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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

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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. 
 
  

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First Published: Feb 02 2025 | 1:00 AM IST

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