Predictable Policies, Not Just Tax Tweaks, Key to Attracting Capital: CEA Nageswaran

• Chief Economic Adviser V Anantha Nageswaran states that predictable and stable policymaking, across both tax and non-tax areas, is crucial for attracting foreign capital, more so than tax tweaks alone.
• The Economic Survey projects India's real GDP growth at 6.8-7.2% for FY27, a slight moderation from FY26's 7.4%, emphasizing caution amid global uncertainty.
• Nageswaran downplays tax policy as the primary barrier to foreign portfolio investment, attributing net flow influences more to Indian companies' overseas investments and repatriation.
• He highlights geopolitical uncertainty and tariff-related risks, especially with the United States, as more immediate factors affecting foreign investment sentiment.
• The Survey advocates for India's industrial growth to shift from 'swadeshi' to strategic resilience, focusing on deregulation, innovation, R&D, and quality-driven competitiveness.

Why It Matters: Predictable and stable policies, alongside global integration, are vital for India to attract sustained capital flows.