Why in news Indian companies are becoming more cautious about investing within the country , according to a new government report. Despite...
Why in news
Indian companies are becoming more cautious about investing within the country, according to a new government report.
Despite global economic uncertainty, outward foreign direct investment (FDI) by Indian firms increased by $12.5 billion in FY25.
The Ministry of Finance says this increase in overseas investment deserves attention, especially as domestic investment slows.
Data from Centre for Monitoring Economy (CMIE) shows the private sector is cancelling more projects compared to announcing new ones, reflecting growing caution.
The ratio of cancelled to new projects has risen from 21.8% in 2022–23 to 36% in 2024–25, reversing a declining trend seen since 2018–19.
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