The rise in FDI inflows to India in 2019 reported by UNCTAD this week is a welcome development and we expect inflows to increase further over the coming years. A key risk is the Modi government’s shift towards more populist policymaking over the past few months. But that hasn’t perturbed foreign investors yet and, reassuringly, further measures to ease FDI restrictions look set to be announced in the union budget next week.
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