Survey calls for multi-pronged strategy to unlock India’s FDI potential

New Delhi: The Economic Survey on Thursday called for a multi-pronged strategy to strengthen the country’s investment climate by addressing both structural and cyclical factors, noting that the key challenge going forward is sustaining FDI inflows amid heightened global volatility. It said that the window for action is still open, but it will not remain so indefinitely. There is a need to move deci-sively to transform the FDI challenge into the next chapter of the economic growth story, it said. Despite a clear government intent and proven economic management, FDI inflows remain below their potential, especially for infra-structure needs. “Proactive reforms are essential to attract more foreign in-vestment,” it said adding this approach involves developing a targeted strate-gy that identifies a specific set of GVC (global value chain) anchors and estab-lishes a state apparatus that collaborates directly with them as partners. The direct engagement will help resolve cross-agency issues and provide custom-ised and time-bound solutions. Additionally, it is also crucial for India not only to offer compelling incentives but also to ensure these incentives are reliably implemented, it said.