a day ago
FDI slippage worry
BEHIND THE NET FDI SLIDEHigh repatriation: MNCs take their investments back to their home country after earning returns through the automatic route after a three-year lock-in period, a share buyback and remittance of assets like proceeds from shares and securitiesExperts say there is a trading mentality among foreign investors rather than a commitment to long-term capital formationThis 'inward orientation' has been promi-nent especially after the global financial crisisThe multitude of regulations that companies need to comply with in India also make it tough to do businessOutward FDI: More Indian companies are expanding and diversifying by investing abroad, aided by the Overseas Direct Investment or ODI guidelines liberalised in 2022
