Explaining India’s Record FDI Freefall
Episode 759 of the The Morning Brief podcast, hosted by The Economic Times, titled "Explaining India’s Record FDI Freefall" was published on May 27, 2025 and runs 19 minutes.
May 27, 2025 ·19m · The Morning Brief
Episode Description
India has recently witnessed a dramatic decline in net Foreign Direct Investment (FDI), sparking concerns across economic and policy circles. In this episode, we explore the key factors behind this unexpected fall and what it could mean for the country’s growth trajectory. While foreign investment continues to come in, a surge indisinvestments and capital outflows as part of the IPO wave last year sharply reduced the net gain. What’s causing global investors to pull back? And why are Indian companies increasingly investing abroad instead of at home? Host Anirban Chowdhury speaks to ET’s Gayatri Nayak and Indranil Sengupta, noted economist and professor at Shiv Nadar University, to look beyond the headline numbers and see whether this is the sign of a maturing economy. They also examine how India’s position in the global investment landscape is shifting, especially as other emerging economies attract greater attention. Is this just a temporary correction due to global uncertainty, or are deeper structural issues at play?
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