Budget 2026: India focuses on keeping foreign investors long-term
India's Budget 2026 is shifting gears—from just attracting foreign investment to actually making it stick around.
This comes after a roughly $21 billion exit by Foreign Portfolio Investors (FPIs) in 2025, despite Indian markets showing comparatively smaller losses.
Why it matters
A stable flow of foreign money means more jobs, better infrastructure, and a stronger economy—stuff that impacts everyday life and future opportunities.
India's economy is still set to grow fast (pegged at 7.4%), with record FDI inflows (figure for FY25 — source needed), but keeping that momentum means making investors feel at home.
Tax reforms and regulatory tweaks
The government is pursuing broader tax reforms, hoping big global funds will stay longer.
SEBI is also taking steps to streamline onboarding and reduce regulatory burdens for foreign investors—basically rolling out the red carpet so they don't take their cash elsewhere.
Expanding trade horizons and startup ecosystem
New trade deals with the UK, EU, Oman, and others are opening up more markets for Indian exports.
Plus, there are calls to consider faster startup approvals and visas—with recommendations to learn from Vietnam's playbook—to support entrepreneurship and to address broader economic implications.