India on track to attract $100 billion FDI this fiscal: Govt
New Delhi, Sep 24: The Centre on Saturday said that India is on track to attract USD 100 billion in foreign direct investment (FDI) in the current financial year on account of the Make-in-India initiative and steps taken by the government to improve the country's ranking in ease of doing business.
In 2021-2022, the FDI inflow doubled $83.6 billion in 2021-22 from $ 45.15 billion in 2014-2015. "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 Bn FDI in the current FY," a statement from the Ministry of Commerce and Industry on Saturday said.
Launched in 2014, 'Make in India' initiative has played a crucial role in transforming the country into a leading global manufacturing and investment destination. The 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, the ministry said.
Production Linked Incentive (PLI) scheme across 14 key manufacturing sectors, 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 world economy, the Government of India has launched a USD 10 billion incentive scheme to build a semiconductor, display, design ecosystem in India.
To strengthen Make in India initiative, several other measures have been taken by the Government of India. The reform measures include amendments to laws, liberalization 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.