Chief Economic Advisor V Anantha Nageswaran on Tuesday underscored the importance of a modern and responsive regulatory framework in fostering an investment-friendly environment.
He emphasised that amid global economic uncertainties, India must ensure regulatory clarity and ease of business operations to sustain foreign direct investment (FDI) inflows.
Speaking at the Post Budget Webinar 2025 on ‘Making India Investment Friendly,’ Nageswaran highlighted India’s emergence as a preferred investment destination, as reflected in steady gross FDI inflows.
He stressed that regulatory mechanisms should align with the broader reform agenda to facilitate economic growth.
With increasing pressures on global economic growth due to recent policy actions by various governments, Nageswaran noted that India must take proactive steps to maintain domestic investor confidence. He stated that sustaining a climate of "constructive optimism" is essential in the face of rising global risk aversion.
A stable investment climate is crucial for capital formation, job creation, and long-term economic expansion. He asserted that a well-structured regulatory framework is a fundamental prerequisite for achieving these objectives.
Regarding the proposed hike in FDI limits in the insurance sector from 74 pc to 100 pc, Nageswaran said the move would attract more capital, enhance competition, and drive innovation.
However, he suggested that additional policy safeguards should be considered to maximise the benefits of increased FDI for consumers and the broader economy.
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