Sachin Kalbag's column: Focus on 2 things: Increasing exports and inviting investors

India's policy response during the fall in the value of the rupee has been focused on managing the flow of capital rather than addressing the problems in the economy. But schemes like Foreign Currency Non-Resident Deposits (FCNR) can only provide temporary relief. They may create some cash flow for some time, but the price will have to be paid by the RBI. The solution is to attract foreign direct investment and increase exports. Countries like Vietnam and Mexico have attracted billions of dollars of FDI in 2026. If India also wants to retain foreign investment, then clear rules at the level of the legislature, executive, judiciary will have to be ensured and the expected results. Take the example of the recent approval to sell a stake in IDBI Bank. This is our largest FDI in the financial sector and it has strengthened the confidence of the market. The credit for this is the government's decision. The Supreme Court, while dismissing the appeals of Yes Bank, RBI and the central government, upheld the order to quash the decision to write-down the AT-1 bond, as the bank administrator had decided beyond the rights granted under the reconstruction framework. This development creates uncertainty for those investing in debt and equity, as well as for the entire financial system. SMBC Bank had invested a huge amount of money in Yes Bank. This is the third case after Daiichi and NTT Docomo, in which Japanese investment was affected. In the case of Tiger Global, the Supreme Court refused to grant relief under the treaty despite the investors having a tax-residency certificate of Mauritius. The court said that this certificate does not prevent the investigation of the case of tax avoidance. This order changed the fundamental basis of tax treaties. Similarly, Aircel's resolution plan was approved by its lenders and the National Company Law Tribunal (NCLT). The rights to use spectrum were recognized as intangible assets in the account of the operator company. Yet the Supreme Court said that spectrum cannot be made a part of the proceedings under the Insolvency and Bankruptcy Code (IBC). In 2025 too, the Supreme Court had quashed the acquisition of Bhushan Power and Steel by JSW Steel, although it finally upheld the resolution plan in September. Such decisions affect FDI and Foreign Portfolio Investment (FPI). Investors understand that the position decided by one institution of the government can be changed by another. We often talk about the long pendency of cases in the judicial system. But the fact is that the Centre-State governments and public sector undertakings (PSUs) together do the most litigation. About Rs 30 lakh crore is stuck in various tax disputes in the country. We have to understand that uncertainty is also a risk. It increases the discount rate of return that companies expect while evaluating investments in India. To restore investor confidence and attract the desired FDI, we have to attract 100 new companies in the electronics and data center sector to manufacture in India. The experience of attracting Apple to invest in India and creating an entire ecosystem of mobile phone manufacturing here shows what can be done. Smartphones have now become India's top export category. We should not depend on imports for essential components of the data center. (These are the author's own views)