Something is very wrong with our economic governance. Nothing else explains India’s inability to attract investment, foreign and domestic. The fall in foreign direct investment (FDI) by 6 per cent in the October-December quarter of this fiscal year underscores this fact.

The FDI dipped to $10.9 billion in the third quarter of 2025-26 from $11.5 billion in the same period last fiscal. Thankfully, there was a rise in the FDI in the first three quarters, from $32 billion to $40.7 billion, a 27 per cent increase. Still, even a quarterly dip must be viewed with consternation, given the backdrop of the government’s concerted efforts to attract private investment.

On the face of it, the stage is set for heavy doses of investment, including FDI, in India. Budget 2025-26, for example, reflects the government’s commitment to fiscal prudence. Even as it forgoes Rs 1 lakh crore by way of a major relief to income-taxpayers, it hopes to bring down the fiscal deficit from 4.8 per cent in 2024-25 to 4.4 per cent in 2025-26.

Besides, macroeconomic numbers show improvement both in quantity and quality. The effective capital expenditure, which is pegged at Rs 1,548,282 crore in the next fiscal, is projected to be 98.7 per cent of the fiscal deficit, Rs 1,568,936 crore (2025-26). In 2023-24, effective capex was 60 per cent of the fiscal deficit.

Thanks to impressive macroeconomic numbers, global organisations like the........

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