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<h1>Foreign direct investment: stronger domestic private investment and removal of high trade tariffs needed to boost inflows.</h1> Strong domestic private sector investment is necessary to attract sustained net foreign direct investment into India; addressing domestic corporate underinvestment and policy uncertainty will enable greater FDI inflows and participation in global supply chains. Concurrently, high tariffs imposed by a major trading partner on labour intensive exports impede market access and risk long term damage to affected industries, while reserve diversification trends reflect uncertainty about traditional reserve assets.