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India continued to strengthen its position as a major investment destination in 2025, supported by an active policy agenda aimed at broadening its investment base
In a research report, the US-based rating agency said bureaucracy could slow approval processes in obtaining licences and setting up businesses, prolonging project gestation.
It said that the foreign inflows are increasing despite challenges like a military operation in Ukraine and COVID-19 pandemic.
The Stalin government, which assumed power on May 7, 2021, is advised by a panel of international repute and the government intends to create a vibrant, $1-trillion-strong market by 2030.
Major changes in financial sector have come ahead of meetings between the Indian prime minister and the US president since the time of original reformer PV Narasimha Rao.
Foreign investments are considered crucial for India, which needs around billions of dollars for overhauling its infrastructure sector such as ports, airports and highways to boost growth.
The country had received FDI of $44.36 billion during April-March 2018-19.
India has drafted rules proposing tighter scrutiny of new Foreign Portfolio Investors (FPIs) from China and Hong Kong.
Countries which shares land borders with India are China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar, and Afghanistan.
The government on Saturday made its prior approval mandatory for foreign direct investments (FDI) from countries that share land border with India to curb 'opportunistic takeovers' of domestic firms, a move which will restrict FDI from China.
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