India’s FDI Landscape in 2025: Challenges and Opportunities

India’s foreign direct investment (FDI) inflows are set to remain robust in 2025, backed by investor-friendly reforms, infrastructure development, and targeted sectoral initiatives. The upcoming Budget 2025 is expected to propose significant changes, including raising the FDI cap in the insurance sector to 100% from the current 74%. However, challenges persist, as net FDI inflows dropped to $0.5 billion during April-November 2024 due to increased repatriation and outward investments by Indian firms. Policymakers aim to address these issues while ensuring sustained investor confidence and economic growth.
Source: Economic Times, Business Standard, Moneycontrol