As FDI outflows surged to $27 billion in FY26, former member of PM Modi’s Economic Advisory Council and ex IMF executive director Surjit Bhalla has pushed for an overhaul of India’s foreign investment regime, warning that policy rigidity and mounting regulatory uncertainty are steadily eroding the country’s appeal among global investors. Bhalla argued that India needs to liberalise rules governing foreign direct investment, simplify dispute-resolution mechanisms and offer stronger tax incentives if it wants to restore investor confidence and sustain economic growth.