India Economics

India Economics Update

11 January, 2018

FDI measures to have limited success

Historically, a low level of foreign investment has been one factor constraining the productive potential of India’s economy. The Modi government has made some progress in addressing this. But FDI inflows to India are still relatively low by EM standards, and the measures announced yesterday are unlikely to make a major difference. What’s more, implementing further FDI reform from here will prove more difficult.

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