India must boost policy credibility and continuity to keep foreign investment flowing

Kim, a specialist from KIEP, explained that India’s investment, trade and industrial frameworks are successfully pulling foreign direct investment into manufacturing, services, financial services and global capability centres. He stressed that the government should preserve its policy direction and demonstrate long-term reliability to keep investors confident. Kim pointed to the United Kingdom and European Union trade deals as potential avenues for broader market reach.

He cited production-linked incentive schemes and the India Semiconductor Mission as examples of industrial policies that encourage production and job creation. While acknowledging strong growth, he warned that without skilled labour and continued education efforts, the benefits may not translate into widespread employment. He also mentioned inflation pressures and a recent central-bank rate hike as risks to monitor.