Foreign firms' investment intensity in India has declined since FY20, according to the Economic Advisory Council to the Prime Minister (EAC-PM), Rediff reported.

Key Facts

  • Foreign firms' investment intensity in India has fallen since FY20.
  • The finding comes from the Economic Advisory Council to the Prime Minister (EAC-PM).
  • The report was carried by Rediff.

What the EAC-PM Found

The Economic Advisory Council to the Prime Minister observed that the intensity of investment by foreign firms in India has weakened since the financial year 2019-20. The assessment points to a shift in overseas corporate investment patterns in the country over the period.

Why It Matters

Investment intensity by foreign firms is a key indicator of overseas business confidence in the Indian economy. A decline since FY20 suggests a change in how foreign companies are deploying capital in the country.

Further details on the findings are expected to be closely watched by policymakers and industry observers.