India's FDI sector is seeing a significant downward trend. What factors are causing apprehensions among the foreign investors to invest in India? Suggest some corrective measures that must be taken by the Government to reverse the falling trend.

In 2022-23, nearly 84 BM of FDI came in, which registered a fall of nearly 43% as compared to the previous year. Factors causing apprehensions: 1) Skill mismatch → only 57% of Indians have formal job training. 2) Fragmented supply chains → adds 20-80% extra cost from manufacturer to consumer. 3) Inconsistent policy frameworks → ease of doing business rank (131 World Bank). 4) Vulnerability of Indian stock markets → fall by 6.5% due to election security. 5) High taxation drives → angel tax etc. Corrective measures: 1) Expert oriented growth → labour intensive sectors like textiles, footwear etc. 2) Consistent policy reforms to attract FDI → PLI make in India etc. 3) Regularised, simplified and single window clearance systems for FDI approval. 4) Currency stabilization by RBI's forex exchange management. 5) Taxation rationalisation to attract FDI. 6) Infrastructure creation → Bharat mala, Padwamala etc. to reduce logistics cost from 10-14%.

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