Gross foreign direct investment (FDI) declined by over 16 per cent year-on-year in 2022-23. Given India’s need to increase investment, where FDI can play a crucial role, it is fair to expect the government to review policies and make necessary amendments wherever necessary to attract a higher volume of FDI. This is also crucial because of the relatively unsupportive global macroeconomic environment — growth is expected to slow along with unfavourable financial conditions. However, policy interventions seem to be moving in the other direction. The government last week notified 21 jurisdictions to be eligible for immunity from the so-called angel tax. The change has further complicated the funding environment and will inevitably affect the level of foreign investment in the start-up world.