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.
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