India has recorded a sharp 96.5% fall in foreign direct investment (FDI) during the current financial year. According to the Times of India, the country received only $350 million in FDI, compared to $10 billion last year. This is the lowest figure reported in years. The report highlights that this drop is alarming for India’s economic outlook.
Several reasons caused this major decline. First, foreign investors pulled out from high-profile Initial Public Offerings (IPOs). Second, many Indian companies moved their money abroad instead of reinvesting at home. As a result, investor confidence dropped. These moves reflect a lack of trust in India’s current investment environment.
Moreover, foreign investors withdrew around $49 billion from India during this fiscal year. They had already pulled out $41 billion the previous year. This trend shows that foreign investors are becoming more cautious. Uncertainty in global markets also adds to this hesitation. These numbers indicate deeper concerns about India’s financial stability.
Adding to the pressure, the United States announced a new tax on iPhones made in India. President Donald Trump said only U.S.-made iPhones will be sold in American markets. He warned Apple that imported phones will face heavy taxes. This decision could hurt India’s growing smartphone manufacturing industry, especially Apple’s plans.
Overall, India’s economic challenges continue to grow. The FDI drop and U.S. tax decision raise serious questions. Will India regain investor trust? The government now faces tough decisions. If not handled well, these issues may slow down economic growth further. For now, India’s business future remains uncertain.