BJP Challenges Congress on FDI Misrepresentation, Highlights India's Economic Progress
The BJP has hit back at the Congress's claims of a decline in FDI, emphasizing the quality and volume of foreign investments under the Modi government. The party highlights the economic reforms and favorable investment climate that have made India a top global FDI destination.
FdiEconomic ReformsBjpCongressInvestment ClimateReal EstateMay 25, 2025
Congress MP Jairam Ramesh targeted the government for what he called dwindling foreign direct investment by posting on the social media platform X: “The just-released RBI data reveals that Net FDI inflows into India in 2024/25 have plunged by an unprecedented 96 per cent to a measly $0.4 billion.”
In-charge of the BJP's National Information and Technology Department, Amit Malviya, retorted, saying, “Today, foreign capital is betting on India’s future. The Opposition and their cheerleaders’ fixation with ‘net FDI’ is not only economically misleading — it reflects either ignorance or a deliberate distortion of facts.”
India’s gross FDI inflows stood at $81 billion in FY25 — a 14 per cent year-on-year increase, despite global economic uncertainty and monetary tightening in the West. India continues to rank among the top 5 global FDI destinations, according to Malviya, an ex-banker himself.
Earlier, Congress General Secretary in-charge Communications questioned the government’s policies and said: “Whatever whitewashing of an official explanation for this precipitous fall is being provided, the fact remains that this reflects tremendous investment uncertainty in India - which is deterring not only foreign investors but Indian companies as well, who would rather invest abroad than at home. We ignore the implications of the dramatic decline at our own peril.”
Malviya went on to give a comparison between FDI attracted under Prime Minister Narendra Modi’s government and during the UPA era. “Since 2014, cumulative FDI inflows have exceeded $670 billion. The Modi Government’s reforms — ranging from Ease of Doing Business, PLI schemes, and digital infrastructure to taxation overhauls — have established a credible, rules-based investment climate,” said Malviya.
More importantly, this is quality capital. FDI is now flowing into high-value sectors such as semiconductors, electric mobility, defence manufacturing, artificial intelligence, and green energy—not merely into real estate or speculative financial instruments.
Hitting out at the failures of the Congress-led government, Malviya said, “Contrast this with the UPA era, marked by policy paralysis, retrospective taxation, and scandals like 2G and Coalgate, which created a hostile environment for both domestic and foreign investors. Back then, capital flight was the norm.”
The BJP leader also used this opportunity to school Congress leaders on how to calculate FDI. “Globally, FDI performance is measured by gross inflows, as reported by institutions like UNCTAD and the IMF. ‘Net FDI’ subtracts repatriation and Indian outbound investment, which unfairly distorts the picture, especially now that Indian companies are expanding abroad as global players. Outbound FDI is a sign of economic maturity, not a liability,” he said.
Frequently Asked Questions
What is the difference between gross FDI and net FDI?
Gross FDI refers to the total amount of foreign investment flowing into a country, while net FDI subtracts repatriation and outbound investments. Gross FDI is the standard measure used by global institutions like UNCTAD and the IMF.
Why is the BJP critical of the Congress's focus on net FDI?
The BJP argues that focusing on net FDI is misleading and reflects either ignorance or a deliberate distortion of facts. They believe it unfairly distorts the picture of India's economic progress and investment climate.
What sectors are currently attracting high-value FDI in India?
High-value FDI is flowing into sectors such as semiconductors, electric mobility, defence manufacturing, artificial intelligence, and green energy, rather than just real estate or speculative financial instruments.
How has the Modi government improved the investment climate in India?
The Modi government has implemented reforms such as Ease of Doing Business, Production-Linked Incentive (PLI) schemes, digital infrastructure improvements, and taxation overhauls to create a credible and rules-based investment environment.
What was the impact of the UPA government's policies on foreign investment?
The UPA era was marked by policy paralysis, retrospective taxation, and scandals like 2G and Coalgate, which created a hostile environment for both domestic and foreign investors, leading to capital flight.
Related News Articles
Eco-Friendly Luxury Living: Sustainable Design Trends in Real Estate
Discover the latest eco-conscious design trends in luxury real estate, from green building materials to innovative energy solutions, and learn how homeowners can make a positive impact on the environment.
India's Real Estate Sector: The Next Employment Powerhouse?
India's real estate industry is poised to become the largest employment generation hub in the country, with a growing demand for skilled professionals in the real estate and allied sectors.
Shashi Kiran Shetty Creates History with Spectacular Hole-in-One at Mumbai's Willingdon Golf Course
In a thrilling moment at the prestigious Willingdon Golf Course in Mumbai, Shashi Kiran Shetty hit a Hole-in-One, a rare and celebrated feat in the world of golf.
China's New Home Prices Show Uptick in November, Thanks to Policy-Driven Market Support
According to a recent Reuters poll, new home prices in China are expected to stabilize by 2026, driven by a series of supportive government policies. Despite a slow start, the housing market is showing signs of recovery as these measures take effect.
Saudi Arabia Opens Property Investments in Makkah and Medina to Foreigners
In a significant move, Saudi Arabia has extended real estate ownership and investment opportunities in the holy cities of Makkah and Medina to non-Saudis. This initiative aims to transform the real estate market into a magnet for both domestic and interna
Jagmohan Garg on Navigating India's Commercial Real Estate: Key Considerations for Investors
The Indian commercial real estate market, driven by rapid urbanization and the expansion of diverse industries, is poised for steady growth. This article delves into key considerations for investors looking to capitalize on this promising sector.