Foreign Investment in India after the Global Financial Crisis
Foreign direct investment both into, and out of, India has yet to recover to the levels reached before the global financial crisis. This is despite the country’s economic resilience in other areas, and a global rise in FDI flows in many emerging market economies during the post-crisis period. Both formal and informal barriers to investment remain challenges for foreign investors in India, including FDI caps, regulatory delays, inflationary pressures, corruption, and poor infrastructure. Given the importance of such investment for future Indian growth — and relations between India and the transatlantic community — the Indian government should continue to seek regulatory and legal reforms that enable greater FDI flows.