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DPIIT Says Reforms and FTAs Will Drive the Next Wave of Investment
By Pooja Shrivastava, Anytime News Network
India’s foreign investment story is sending mixed signals. While the government continues to highlight reforms, industrial expansion and investment-friendly policies, a nearly 50% decline in Net Foreign Direct Investment (FDI) has triggered fresh concerns about long-term investor confidence.
According to recent figures, Net FDI has dropped to around $10.6 billion, while Foreign Portfolio Investment (FPI) inflows have surged to $40.6 billion. Economists note that FPI is often volatile and short-term in nature, whereas Net FDI is considered a stronger indicator of sustained investor commitment and economic confidence.
Against this backdrop, the Department for Promotion of Industry and Internal Trade (DPIIT), in collaboration with Invest UP, held an industry outreach programme in Lucknow. DPIIT Joint Secretary Dr. Jai Prakash Shivahare highlighted the government’s efforts to improve the business climate through regulatory reforms and simplification measures.
He stated that the Jan Vishwas initiative has eliminated several outdated laws, reducing compliance burdens and improving the ease of doing business. Dr. Shivahare also emphasized that despite global uncertainties, including geopolitical tensions and tariff-related challenges, India continues to strengthen its trade partnerships.
Over the last five years, India has concluded more than nine Free Trade Agreements (FTAs), covering nearly 39 countries. According to DPIIT, these agreements are expected to enhance export competitiveness and create new opportunities for investors and businesses.
The official also underlined the government’s competitive approach toward industrial park development, where states will be evaluated on infrastructure readiness, land availability, utilities and investor support systems. The aim is to develop world-class plug-and-play industrial ecosystems.
Industry stakeholders, however, pointed out the need for greater policy consistency, faster approvals and improved transparency. Questions were also raised regarding regulatory benefits available to certain categories of foreign investors.
Invest UP CEO Vijay Kiran Anand said Uttar Pradesh is actively strengthening its investment ecosystem through Nivesh Mitra 3.0, digital governance initiatives and dedicated facilitation mechanisms for global investors.
As India seeks to position itself as a preferred manufacturing and investment destination, the key challenge remains whether ongoing reforms and trade agreements can reverse the decline in Net FDI and restore long-term investor confidence.
