Chief Economic Adviser V. Anantha Nageswaran has highlighted India’s ability to attract foreign capital with its broader manufacturing and overall reforms. Addressing the 13th PAFI annual forum in New Delhi, Mr Nageswaran emphasized that the most important thing for the industry is global competitiveness. He added that the global environment in which investment decisions are made has now shifted, making it important to assess India’s foreign direct investment performance in that context.

Mr Nageswaran also pointed to investor protection, tax-policy certainty and consistency, and availability of skilled talent and logistics as other factors that can influence investment decisions. He noted that changing global interest-rate environments could also have a significant bearing on the cost of capital and cross-border investment flows.