Is Congress Ignorant About FDI Gains Amid Global Uncertainty?

New Delhi, May 25 (NationPress) The ongoing verbal clash between the Congress and the BJP centered on economic matters this Sunday, as the former accused the government of a decline in Foreign Direct Investment (FDI), while the latter criticized the opposition's misleading focus on ‘net FDI’ and their apparent ignorance.

Congress MP Jairam Ramesh took to the social media platform X, expressing concerns over what he termed a drastic drop in foreign direct investment: “The recently published RBI data shows that Net FDI inflows into India for 2024/25 have plummeted by a staggering 96 percent to a mere $0.4 billion.”

In response, Amit Malviya, who oversees the BJP's National Information and Technology Department, countered, asserting, “Today, foreign capital is placing its bets on India’s future. The opposition's obsession with 'net FDI' is not only economically misleading—it demonstrates either ignorance or a calculated distortion of the facts.”

Malviya further highlighted, “India's gross FDI inflows reached $81 billion in FY25, marking a 14 percent year-on-year increase, despite the turbulent global economy and tightening monetary policies in the West. India remains a top 5 global FDI destination.”

Earlier, the Congress General Secretary in charge of Communications raised doubts about the government’s policies, stating, “No matter how much the official explanation tries to downplay this alarming drop, it reflects significant investment uncertainty in India—deterring not only foreign investors but also Indian companies, who prefer to invest overseas.”

Malviya also compared the FDI attracted during Prime Minister Narendra Modi’s tenure to that of the UPA government, stating, “Since 2014, total FDI inflows have surpassed $670 billion. The reforms initiated by the Modi Government—ranging from the Ease of Doing Business to PLI schemes and digital infrastructure—have created a reliable, rules-based investment environment.”

He emphasized, “Critically, this is quality capital. FDI is now directed towards high-value sectors such as semiconductors, electric mobility, defence manufacturing, artificial intelligence, and green energy—rather than just real estate or speculative financial products.”

Malviya criticized the Congress-led government, stating, “In contrast, the UPA era was plagued by policy paralysis, retrospective taxation, and scandals like 2G and Coalgate, which fostered a hostile environment for both domestic and foreign investors. Capital flight was commonplace then.”

He also took the opportunity to educate Congress leaders on FDI calculations, stating, “Globally, FDI performance is evaluated based on gross inflows, as reported by organizations like UNCTAD and the IMF. ‘Net FDI’ subtracts repatriation and Indian outbound investments, which skews the reality—especially since Indian companies are now expanding globally. Outbound FDI is a sign of economic maturity, not a drawback.”