The Ministry of Commerce & Industry in a statement said India is on track to attract $100 billion in Foreign Direct Investment (FDI) in the current financial year. A ministry statement added that annual FDI inflows into India have been trending upwards since 2014-15, crediting the government’s ‘Make in India’ flagship scheme, which completes 8 years on September 25, for the same.
FDI inflows in India stood at $45.15 billion in 2014-2015 and have since consecutively reached record FDI inflows for eight years.
“The year 2021-22 recorded the highest ever FDI at $83.6 billion. This FDI has come from 101 countries, and invested across 31 UTs and States and 57 sectors in the country. On the back of economic reforms and Ease of Doing Business in recent years, India is on track to attract US$ 100 billion FDI in the current financial year,” the ministry presser added.
Make in India initiative is an open invitation to potential investors and partners across the globe to participate in the growth story of ‘New India’. Make In India has substantial accomplishments across 27 sectors. These include strategic sectors of manufacturing and services as well.
It further added to attract foreign investments, the government has put in place a liberal and transparent policy wherein most sectors are open to FDI under the automatic route.
Production Linked Incentive (PLI) scheme across 14 key manufacturing sectors, was launched in 2020-21 as a big boost to Make in India initiative. The PLI Scheme incentivises domestic production in strategic growth sectors where India has comparative advantage. This includes strengthening domestic manufacturing, forming resilient supply chains, making Indian industries more competitive and boosting the export potential. PLI Scheme is expected to generate significant gains for production and employment, with benefits extending to the MSME eco-system.
Highlighting other steps taken to strengthen ‘Make in India’, the ministry said several other measures have been taken. The reform measures include amendments to laws, liberalisation of guidelines and regulations in order to reduce unnecessary compliance burden, bring down cost and enhance the ease of doing business in India.
“Burdensome compliances to rules and regulations have been reduced through simplification, rationalisation, decriminalisation, and digitisation, making it easier to do business in India. Additionally, Labour reforms have brought flexibility in hiring and retrenchment. Quality control orders have been introduced to ensure quality in local manufacturing. Steps to promote manufacturing and investments also include reduction in corporate taxes, public procurement orders and Phased Manufacturing Programme”.
