Neutral impactEconomy
India needs policy credibility and continuity to sustain FDI as strong growth alone is not enough, says KIEP expert
Economic Times 1 hr ago·18 Oct 2026, 6:46 am
A leading South Korean economic research body has highlighted a critical requirement for India to maintain its status as a preferred destination for global investors. The Korea Institute for International Economic Policy (KIEP) argues that while the country's strong economic growth is a positive factor, it is not sufficient on its own to guarantee sustained Foreign Direct Investment (FDI).
The expert emphasized that international investors place a high premium on policy credibility and continuity. This means that for India to reassure global stakeholders about its long-term business environment, the government must maintain stable and predictable policies over time. This stability is seen as a key driver for building confidence and sustaining capital inflows.
For investors, this underscores the importance of monitoring policy shifts and regulatory frameworks. A consistent policy environment is viewed as a safeguard against uncertainty, helping to ensure that India remains an attractive market for foreign capital in the long run.
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- Category: Economy.
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