Govt sets ambitious target of $100 billion in FDI amid recent declines
- The inflow of FDI has fallen to $70 billion in FY24 from $71 billion in FY23, according to a Global Trade Research Initiative (GTRI) report.
New Delhi: The government has set itself an ambitious target of attracting $100 billion in foreign direct investment (FDI) that would reverse falling levels of FDI in recent years.
The inflow of FDI has fallen to $70 billion in FY24 from $71 billion in FY23, according to a Global Trade Research Initiative report.
Briefing reporters on the achievements of the Department for the Promotion of Industry and Internal Trade (DPIIT) in the government's first 100 days, Secretary Amardeep Bhatia said, "We are taking concrete steps to ensure that labour and skill-focussed industries receive priority, and investments through FDI reach $100 billion in the coming years."
Also Read: India’s FDI inflows jump 47.8% to $16.17 billion in April-June FY25 driven by services, telecom, pharma sectors
He said the FDI trajectory is improving, noting that $22.9 billion has flowed in during the first four months of FY24, which is 26% higher than the same period last year.
India attracted $667.4 bn FDI inflow from 2014 to 2024
As per the commerce ministry, India has attracted a cumulative FDI inflow of $667.4 billion from 2014 to 2024, reflecting a substantial 119% increase over the previous decade (2004-2014).
This investment spans all states and 57 sectors, contributing to growth in diverse industries.
Most sectors, except for certain strategically important ones, are open to 100% FDI under the automatic route.
FDI equity inflows into the manufacturing sector during the decade reached $165.1 billion, representing a 69% increase compared with the $97.7 billion inflows seen during 2004-2014, the commerce ministry said.
Also Read: FDI retreating from emerging markets such as China, India: Moody’s
Bhatia added that discussions are underway with relevant departments to introduce a set of amendments aimed at easing compliance requirements for operation of industrial activities. The DPIIT has identified 100 such compliance issues that will be eliminated through a legislative process soon, he said.
"We have initiated efforts to ease investments under ‘Make in India’. The focus has also been on attracting technology. Another emphasis of Make in India has been infrastructure development, which has been advanced through the establishment of industrial parks and corridors," Bhatia said.
"We are also concentrating on improving the ease of doing business, which has been a key focus area. More than 42,000 compliance requirements have been eliminated, which has significantly benefited the industry."
The Centre is also supporting states in implementing these reforms. The Production-Linked Incentive (PLI) scheme has received a positive response, generating employment for 900,000 individuals under the programme, he added.
Regarding the PLI extension to other sectors, Bhatia clarified that no decision has been made yet, and the focus remains the 14 existing sectors at this time.
He also clarified that there are no proposals to expand the PLI for drones, as the civil aviation ministry has not submitted any such request, even though it is recognized as a sunrise sector.
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Business NewsEconomyGovt sets ambitious target of $100 billion in FDI amid recent declines
First Published:25 Sep 2024, 07:53 PM IST
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