FDI Inflows - Gross foreign direct investment (FDI) inflows into India are expected to exceed $100 billion in the current fiscal year, compared to $80.6 billion in FY25 [1] - FDI inflows reached $50.4 billion in the first half of the fiscal year, marking a 16% increase from the previous year [1] - Net FDI inflows, after accounting for outflows, stood at $7.6 billion, indicating a need for India to improve its regulatory and infrastructural environment to attract more net inflows [1] Geopolitical and Economic Context - The geopolitical and geoeconomic landscape has changed significantly, necessitating India to enhance its efforts in attracting FDI and global supply chain companies [1] - The abrupt rise in interest rates in developed countries over the past three years has negatively impacted FDI inflows to India [1] Currency and Economic Outlook - Concerns regarding the rupee breaching the 90-per-dollar mark have been downplayed, with expectations that the currency will regain its strength next year [8] - The rupee is considered one of the least volatile currencies since April 2, despite its depreciation [8] - Other emerging economy currencies have depreciated more than the rupee in the previous fiscal year, suggesting a relative stability of the rupee [6][8]