📷 Image: Wikimedia Commons / Ministry of Commerce and Industry (India)
Business
Policy credibility and continuity vital for sustaining FDI in India, says KI
✍️ The Economic Times
🗓 18 Oct 2026, 12:50 PM
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KI emphasized that while India's strong economic growth attracts foreign investment, lasting FDI inflows depend on credible and continuous policy frameworks. He warned that growth alone cannot guarantee sustained investor confidence.
Speaking to The Economic Times, KI highlighted that India's recent growth trajectory has drawn attention from global investors, yet the sustainability of foreign direct investment hinges on more than just economic expansion. He stressed that investors look for stable and predictable policy environments when committing capital for the long term.
KI pointed out that frequent policy shifts or perceived unpredictability can erode confidence, prompting investors to reconsider or delay their commitments. Continuity in regulatory frameworks, tax policies, and sector‑specific rules is therefore essential to maintain the momentum of FDI inflows.
He concluded that while strong GDP growth remains a positive signal, it must be complemented by credible policy signals to ensure that India remains an attractive destination for foreign capital over the coming years.
KI pointed out that frequent policy shifts or perceived unpredictability can erode confidence, prompting investors to reconsider or delay their commitments. Continuity in regulatory frameworks, tax policies, and sector‑specific rules is therefore essential to maintain the momentum of FDI inflows.
He concluded that while strong GDP growth remains a positive signal, it must be complemented by credible policy signals to ensure that India remains an attractive destination for foreign capital over the coming years.