FDI drops for second year amid high rates, election uncertainty; Modi's win may reverse trend

Foreign direct investment (FDI) declined for the second consecutive year in FY24, dropping to $70.95 billion. Analysts blame high interest rates in developed economies and the Lok Sabha elections for deterring foreign investors. With the Narendra Modi-led NDA government winning a third term at the Centre, signalling policy continuity, the trend may reverse in the coming years, say experts. Let’s take a look at the FDI trends

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