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Rise Of Foreign Direct Investment In India

Make in India initiative of the government and its outreach to all investors has made a positive investment climate for India

Photo Credit : Shutterstock


The major purpose behind ‘Make in India’ initiative is job creation and skill enhancement in all the major sectors of the economy. In September 2014, the government increased the foreign investment upper limit with an aim to promote India as an important investment destination and a global hub for manufacturing, design and innovation.

In 2013, India was ranked 15th in terms of FDI inflow, it rose up to 9th position in 2014, and in 2015 India overtook the U.S and China as the top destination for foreign direct investment. The success in FDI for India in such a short span is worth applauding.

Looking at the statistics, FDI during October 2014 and May 2016 grew 46 per cent from $42.31 to $61.58 billion after the launch of ‘Make in India’ campaign. Singapore, Mauritius, the Netherlands, Unites States accounts for major share of FDI inflows in India.

The government of India is taking various measures like opening FDI in various sectors of the economy and improving ease of doing business. Agriculture, Civil Aviation, Courier Service, Defense, Education, Pharma, Railway, Telecom, Tourism, Food products are some sectors under the ‘Make in India’ initiative where 100 per cent FDI is permitted.

Sectors that attract maximum FDI include services, trading, automobile, and power. The state-wise analysis shows Delhi, Haryana, Gujarat, Andhra Pradesh together attracted more than 70% of total FDI. The government has approved more than 259 proposals for setting up special economic zones relating to IT sector.

With hassle free and easy investment opportunities in India, FDI inflows under the approval route which require prior government permissions increased by 87% during 2014-15 with an inflow of $2.2 billion. The government has awarded 56 defence manufacturing permits to private sectors entities in the past one year. Another sector which saw a big boost is Electronic manufacturing, with $13.5 billion invested.

Make in India initiative of the government and its outreach to all investors has made a positive investment climate for India. Countries such as Japan, China, France, and South Korea announced their intention to invest in India in various Industrial and Infrastructure project.

India has become a vibrant market for manufacturers and investors. The country stands committed to have an FDI policy and administration which is investor friendly and also promotes investment leading to increased manufacturing, job creation and overall economic growth of the country.

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fdi investment make in india skill develpment investment