India is on track to attract $100 billion FDI in the current financial year 2022-23, supported by economic reforms and ease of doing business in recent years. During the last financial year 2021-22, the country recorded the highest-ever FDI at $83.6 billion from 101 countries, the commerce ministry said in a statement.
“FDI inflows in India stood at $45.15 billion in 2014-15 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 $100 billion FDI in the current FY,” the ministry said in the statement.
It added that to attract foreign investments, the central government has put in place a liberal and transparent policy wherein most sectors are open to FDI under the automatic route.
“Make in India, the flagship programme of the Government of India that aspires to facilitate investment, foster innovation, enhance skill development and build best-in-class manufacturing infrastructure, completes eight years of path-breaking reforms on September 25, 2022,” the statement said.
Steps Taken To Attract FDI
The production-linked incentive (PLI) scheme is one of the schemes to attract foreign investment to the country and boost domestic manufacturing. It was launched in 2020-21 as a big boost to the Make in India initiative. The PLI scheme incentivises domestic production in strategic growth sectors where India has a comparative advantage. This includes strengthening domestic manufacturing, forming resilient supply chains, making Indian industries more competitive and boosting the export potential.
Recognising the importance of semiconductors in the global economy, the government has launched a $10-billion incentive scheme to build a semiconductor, display and design ecosystem in India.
On the ease of doing business front, the commerce ministry said the National Single Window System (NSWS) was soft-launched in September 2021 to improve the ease-of-doing business by providing a single digital platform to investors for approvals and clearances. This portal has integrated multiple existing clearance systems of the various ministries/ departments to enhance the investor experience.
The government has also launched a programme for multimodal connectivity to manufacturing zones in the country, called the Prime Minister’s Gatishakti programme, which will ensure logistical efficiency in business operations through the creation of infrastructure that improves connectivity. This will enable faster movement of goods and people, enhancing access to markets, hubs, and opportunities, and reducing logistics cost.
The One-District-One-Product (ODOP) initiative is another manifestation of the ‘Make in India’ vision for facilitating promotion and production of the indigenous products from each district of the country and providing a global platform to the artisans and manufacturers of handloom, handicrafts, textiles, agricultural and processed products, thereby further contributing to the socio-economic growth of various regions of the country.
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