Economic Survey 2026: India's Growth Strong, But FDI Attraction Lags

Business
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News18•31-01-2026, 07:19
Economic Survey 2026: India's Growth Strong, But FDI Attraction Lags
- •The Economic Survey 2026 highlights India's strong economic growth but points out a significant lag in attracting Foreign Direct Investments (FDI) despite being the world's fourth-largest economy.
- •The report notes that while foreign investments are permitted in many sectors, actual investments received are low, emphasizing the need for substantial improvement.
- •Countries like Vietnam, Malaysia, Thailand, Philippines, and Australia attract large FDIs through faster approvals, clear policies, and government support, rather than just incentives.
- •FDI is crucial for long-term support in infrastructure, manufacturing, and technology, as domestic investments alone cannot achieve the desired level of development.
- •The survey recommends India identify priority projects, offer outcome-based incentives for key sectors, and improve central-state coordination to boost investor confidence.
Why It Matters: India needs to streamline policies and approvals to significantly boost FDI, despite robust economic growth.
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