Economic Survey proposes task force to engage global firms, boost FDI, offset tariff impact

FDI outflows from India rose to $22.1 billion between April and November 2025.

• Economic Survey urges a task force to attract top global companies for FDI boost
• India proposes single accountability center to boost production hub status
• Net FDI surged to $5.6 billion, up nearly sevenfold from last year

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The Economic Survey for 2025-2026 has called for the creation of a dedicated task force to engage top global companies to boost foreign direct investment (FDI) in India and offset challenges from steeper tariffs.

"Creating a task force to engage top global companies and promote India’s advantages —

stability, macroeconomic strength, sustained growth and market size — could boost FDI,

especially in targeted sectors. Proactive diplomacy, highlighting these strengths, can help offset tariff challenges," the survey said.

Another key recommendation is a single, empowered centre of accountability to position India as a credible alternative production hub, capable of handling large volumes, integrating with global suppliers, meeting regulatory and compliance standards and providing predictable multi-year outcomes for investors.

It added that efforts to improve the investment environment by simplifying processes and procedures to attract FDI will also need to be kept up.

"As foreign investors prioritise predictability and sustainability in policies, every policy change in the country must pass the necessity test to meet both these parameters," the survey said.

Recent bilateral initiatives, such as the India-Israel Bilateral Investment Treaty and the India-European Free Trade Association (EFTA) Trade and Economic Partnership Agreement, which includes a binding $100 billion investment commitment, could significantly boost India’s FDI inflows if effectively implemented.

Realising these benefits requires coordinated action across government departments and agencies to streamline India’s trade policy and secure a stronger position in global value chains (GVCs), it said.

"Companies harvest profits from established operations in India while hesitating to commit fresh capital amid global uncertainty. The solution lies in mobilising new investment through policy stability, aggressive investor engagement, and scaling proven state-level models nationwide," the survey said.

FDI outflows from India rose to $22.1 billion between April and November 2025.

Improvements in gross inflows and a moderation in profit repatriation by foreign investors helped net FDI surge nearly sevenfold to $5.6 billion, up from $0.8 billion in the same period last year, signaling strengthening investor confidence in the country.

The Economic Survey 2025–26, prepared under the supervision of chief economic adviser V Anantha Nageswaran, was tabled in Parliament on January 29.