evidence: FDI Flows to India: Recent Trends, Challenges and Way Forward [...] The recent spurt in FDI inflows into India can be attributed to various factors, including several bold policy reforms and initiatives undertaken by the government over the last few years to enhance economic competitiveness and the ease of doing business in the country. Besides, political stability has also boosted the confidence of foreign investors. The most important policy reforms that had been pending for long but that were implemented by the government only in the recent past include the introduction of the goods and services tax (GST) regime and a significant cut in the corporate profit tax rate to 17% for new manufacturing firms and 25% for other firms. The reduction in the corporate tax rate has made India more attractive from a tax perspective and put the country on par with many counterparts in the Asian region.