10 years of ‘Make in India’: Govt eyeing $100 bn FDI inflow, says DPIIT

(Photo: PM Modi on LinkedIn)

3 minutes of reading Last update: Sep 25, 2024 | 19:14 IST

The government plans to achieve the target of $100 billion in foreign direct investment (FDI) inflows per year in the coming years in line with India’s drive to implement the ‘Make in India’ programme, Department of Promotion of Industry and Internal Trade (DPIIT) Secretary Amardeep Singh Bhatia said on Wednesday.

“Our target is much higher investment flows. We have around $70-80 billion of FDI inflows coming in every year; we expect it to go up to at least $100 billion annually in the coming years,” Bhatia told reporters at a press conference after completing 10 years of the Make in India initiative.

The initiative was launched ten years ago with the aim of increasing production, attracting foreign investment, improving infrastructure and promoting domestic production.

According to Bhatia, the Make in India initiative has brought about significant achievements in manufacturing infrastructure, defence and exports. Policies like the Production Linked Incentive (PLI) scheme, FDI reforms and infrastructure development have been effective in attracting domestic and foreign investment.

“While challenges remain in areas such as job creation and SME (small and medium enterprise) development, this initiative has significantly boosted India’s industrial capacity and export competitiveness over the last decade,” he said.

Foreign capital inflows in the last 10 years stood at USD 667.4 billion, compared to USD 304.1 billion in the previous decade – 2004-14. Foreign direct investment (FDI) inflows in the manufacturing sector during 2014-2024 stood at USD 165 billion, up 69 per cent over 2004-14. Sectors like automotive, telecom and pharmaceuticals recorded the largest amount of foreign capital inflows.

In the April-June quarter of the current fiscal year (Q1FY25), India attracted foreign direct investment worth USD 22.49 billion, up 26 per cent year-on-year (YoY).

On the PLI front, at the end of June 2024, the 14 sectors covered by the scheme recorded investment of Rs 1.32 trillion and output of Rs 10.90 trillion, generating employment for around 850,000 people.

“The footprint of Make in India has become visible across sectors, including areas where we never dreamed of making an impact,” Prime Minister Narendra Modi said in a LinkedIn post, citing an example of Make in India’s success.

He added that currently 99 percent of the mobile phones used in India are manufactured in India and the country has become the second largest manufacturer of mobile phones in the world.

“We know how important mobile phones have become now, but what is surprising is that in 2014, we had just two mobile phone manufacturing units in the entire country. Today, that number has gone up to over 200. Our mobile phone exports have skyrocketed from a mere Rs 1,556 crore to a whopping Rs 1.2 lakh crore — a 7,500 per cent increase,” he said.

Similarly, India’s semiconductor manufacturing sector has attracted investments worth over 1.5 trillion rupees and the five approved plants will have a combined production capacity of over 7 trillion chips per day, Modi said.

First published: Sep 25, 2024 | 19:07 IST