India Seeks to Boost Foreign Investment

The Indian government is exploring new measures to attract foreign direct investment (FDI), which has reached a five-year low of $71 billion. Officials are considering the introduction of 'mezzanine instruments' that combine equity and debt to liberalize capital markets and potentially inject an additional $20-30 billion into the economy. Meanwhile, India has bucked global trends with robust venture capital investment, securing $3.6 billion in Q3 2024, primarily in consumer-focused sectors. Swiss investments are also on the rise, propelled by a forthcoming $100 billion trade agreement with the European Free Trade Association, aimed at reducing tariffs and boosting bilateral trade. This influx of foreign capital is supported by India's strong economic growth and government initiatives promoting local manufacturing, particularly in the electronics sector, where major players like Apple and Samsung are expanding operations. Overall, India's economic landscape is shifting as it positions itself as a key player in global supply chains and attracts significant global investments.